U.S. and Mexico dispute: Genetically modified corn


In the end of 2024 it is expected that the U.S. dispute with Mexico over genetically modified corn is going to be resolved, says the U.S. chief Agricultural negotiator McKalip. In 2020 Mexico published a presidential decree that said that the country would ban the genetically modified corn from human diets, arguing that it is posing a threat against the native corn varieties and could pose a threat to human health. McKalip Argues that; “This case is about a lot more than biotech corn. It’s about making sure that nations adhere to the provisions of the trade agreements they’ve already signed and making sure we stick to science as the underpinning of trade”. Mexico buys about $5 billion of U.S. GMO corn each year, most for livestock feed.

The background for the dispute is stemming from the Mexican president Lopez Obrador´s 2020 and 2023 Corn Decrees. Mexico has been standing firm on its ban of genetically modified corn, the reasons for their ban and legislative change was because of health issues and cultural reasons. The US believes that the ban will disrupt the bilateral agricultural trade and economic harm to the US and Mexican producers, and because of this the US has had to invoke the dispute settlement provisions under chapter 31 of the UMSCA. The North American Free Trade Agreement (NAFTA) removed nearly all tariffs and quotas on trade between the U.S., Mexico, and Canada. This removal of trade barriers ushered in a period of flourishing corn trade, among other commodities, between the U.S. and Mexico. The Corn Decree issued by the Mexican president in 2020 described processes where the GMO corn would be replaced, the decree created some tensions in the trade. López Obrador sought to address U.S. concerns by clarifying that the prohibition outlined in the 2020 Corn Decree specifically targeted genetically modified (GM) yellow corn meant for human consumption, rather than all GMO yellow corn. This clarification aimed to alleviate worries in the U.S. regarding the export of GMO yellow corn intended for animal feed and other industrial purposes. American Farm Bureau Federation President Duvall issued an statement where he said that, “Mexico’s biotechnology ban is not only a clear violation of the USMCA, but also it ignores science, stands in the way of our farmers’ sustainability, and denies families in Mexico safe and affordable food.”


Bt-Corn which is a type of GM corn reduces the need for pesticides, the primary benefit comes during a heavy corn-borer infestation, but unpredictability, the insects who are beneficial for the crop also fare much better under these conditions. As per Leonard Gianessi, a senior research associate at the National Center for Food and Agricultural Policy, farmers embracing GMOcrops tend to experience increased profitability during challenging economic periods. Furthermore, a recent review by the International Council for Science (ICSU) suggests that disease-resistant corn varieties engineered through genetic modification may exhibit reduced levels of mycotoxins, which are compounds potentially carcinogenic to humans. But there are also some risks related to the GMO crop. There are concerns that transgenic strains, possessing a competitive edge, could progressively supplant essential genetic diversity. This apprehension has led to the prohibition of transgenic corn in Mexico, a country boasting over 100 distinct varieties. Despite the ban, transgenic traits have been detected in Mexican corn


Links:

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC212689/

https://www.reuters.com/markets/commodities/us-mexico-gm-corn-dispute-be-resolved-this-year-chief-agricultural-negotiator-2024-02-07/

https://ielp.worldtradelaw.net/2024/01/the-ge-corn-dispute-us-agriculture-challenges-mexican-culture.htm





Comments

Popular posts from this blog

Wheat and Corn trends, an global outlook for 2023/2024

Two years with war in Ukraine - What's the status in the wheat market?