A closer look at the US-Mexico GMO corn lawsuit
The Mexican government's decision to prohibit the importation of genetically modified corn is the source of the latest disagreement between the two trading partners, which will be the subject of the next trade conflict.
First, it was the rules of origin, and then it was the energy policy that the Mexican government implemented. It would appear that Mexico and the United States are getting ready to have another disagreement within the context of the T-MEC regarding genetically modified corn, also known as transgenic corn.
The objective of the federal government is to switch from the purchase of transgenic corn to the production of corn at the local level. The following are five essential pieces of information to comprehend this conflict:
During Andrés Manuel López Obrador's inauguration as president of Mexico in 2018, he made a point of highlighting the country's prohibition on the cultivation of genetically modified crops.
In December 2020, López Obrador signed a decree to reduce the country's reliance on the importation of 16 million tons of yellow corn by the year 2024. This corn comes primarily from the United States and is almost entirely genetically modified.
According to data obtained from the National Directorate of Light Industries within the Ministry of Economy in 2021, Mexico imported more than 16.5 million tons of yellow corn (SE).
According to AgroBio, an association that is made up of companies such as Monsanto and Energa, the production costs for some crops will increase if the ban on GMOs is implemented.
The United States has not ruled out the possibility of using the T-MEC to "pressure" other countries to lift their ban on the importation of genetically modified corn. Tom Vilsack, the Secretary of Agriculture for the United States, has stated that he is currently engaging in discussions with officials from Mexico regarding the matter.
