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December 6, 2022
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The decree against transgenic corn puts pressure on importers and inflation

The decree against transgenic corn puts pressure on importers and inflation

The risks

Ban supporters say GM seeds can contaminate ancient Mexican native varieties, glyphosate-based herbicides cause cancer.

Faced with US pressure and legal battles have been waged for years in US courts alleging that the threats of a dispute under the US-Canada-Mexico trade agreement (TMEC), Mexican President Andrés Manuel López Obrador announced in November that imports of transgenic yellow corn for animal feed would still be allowed, pending an annual permit from the health regulator, Cofepris.

However, Mexican officials have not said how much GM yellow corn they will continue to buy and whether the plan to slash imports remains on track.

How much will imports decrease?

Agriculture Undersecretary Víctor Suárez told Reuters in October that Mexico, a major buyer of US corn, is on track to halve its corn imports by 2024.

He would make up the difference by increasing domestic production and seeking agreements with US, Argentine or Brazilian farmers for non-GM corn, he said.

Reuters interviewed industry experts, traders and farmers about the challenges of securing a large enough supply of non-GM corn for Mexico’s import needs, and in time for its 2024 decree.

According to the National Corn Producers Association (NCGA), more than 90% of the corn grown in the United States, the main source of this product in Mexico, is genetically modified.

more pressures

Ken Dallmier, chief executive of Clarkson Grain, a US supplier of organic and non-GMO grains, said that while there is currently not enough supply of non-GM crops in the United States for Mexico, there could be if the Latin American nation acts fast.

“There is still time for market forces to affect supply and logistics to meet Mexico’s needs and desire, but that window is rapidly closing,” he said.

The growing trade tension comes as global demand for grains and oilseeds is strong and supplies tight, after conflict in Ukraine disrupted grain exports from the Black Sea region and widespread drought hampered crops in the plains of the United States.



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