b'Some studies show that over theMexican counterparts at all levels of gov- 2005-2015, regulatory asynchrony in ernment, we remain firm in our view thatmajor markets caused regulatory costs to 10-year forecast period, the MexicanMexicos current biotechnology trajectoryincrease 50% for row crops (Cossey, 2016; ban on GM corn could cause theis not grounded in science, which is theKalaitzandonakes, et al. 2016). Larger foundation of USMCA. regulatory costs affect small market crops U.S. economy to lose $73.89 billionand small, innovating firms disproportion-in economic output, and GrossU.S. Reacts ately, leading to greater industry concen-In the U.S., the countrys still trying totration and a possible lack of competition Domestic Product (GDP) coulddetermine what a ban like this could(Sachs 2016; Fuglie, et al., 2011).contract by $30.55 billion over 10mean for exports. But, more broadly, the association According to the University of Illinoissbelieves the seed sector supports major years. Additionally, the U.S. couldFarm Policy News, Mexico buys aboutindustries that stand to loses significant 17 million tons of mostly GM yellow cornamounts of revenue should Mexico walk lose 32,217 jobs annually with laborfrom the U.S. annually, most of which isaway from GM corn. Particularly, the corn income falling $18.38 billion. used for animal feed. For associations likefarming, corn wet milling, ethanol, and the American Seed Trade Associationtransportation sectors would feel theASTA (ASTA), the news of the ban is disappoint- biggest effects in Mexiconot only rais-ing. ing Mexicos food prices, but also inhibit-Mexico is one of our oldest anding Mexican farmers from accessing the strongest trading partners. Their decisionmost innovative seeds. The ban would to ban GM corn is not only disappoint- also have widespread effects on the U.S. 32,217ing, it is not based in science and it iseconomy as well.is the amount of jobs potentially lost ifout of step with the commitments theySome studies show that over the Mexico bans GM corn. agreed to under USMCA, ASTA says, in10-year forecast period, the Mexican ban an emailed statement to Seed World U.S.on GM corn could cause the U.S. econ-The United States has a long track recordomy to lose $73.89 billion in economic of using GM corn. Numerous studies haveoutput, and Gross Domestic Product $3.56billioni demonstrated that GM corn is safe for(GDP) could contract by $30.55 bil- s the projected amount of economic lossuse in food and safe for cultivation in thelion over 10 years. Additionally, the U.S. in the first year of the ban to the U.S. cornenvironment. Mexicos recent actions alsocould lose 32,217 jobs annually with labor industry.contradict its previously long and predict- income falling $18.38 billion, ASTA says.able track record of approving GM cornASTA holds hope that international products. trade enforcement and dispute resolution When it comes to the U.S. seed sector,processes will solve this impasse.$7.65 billion ASTA says many stakeholders along theThe dispute mechanisms in trade is the projected amount of losses the U.S.corn value chain are still grappling withagreements like the USMCA were negoti-corn wet milling industry would sufferhow the ban will be felt by U.S. compa- ated to ensure that trade barriers do from the GM corn ban over a 10-yearnies. not prevent U.S. farmers from accessing forecast period.For the seed sector, Mexicos pro- innovative tools. Seed innovations are posed ban threatens to lead to a chill- necessary to sustainably produce food ing effect in crop innovation, because itfor our ever-growing world population, introduces significant uncertainty into theASTA says.$521.5million industrys ability to develop geneticallyis the net loss the U.S. ethanol industryimproved corn varieties using biotech- Mexico Reacts(including DDGS) would incur afternology, ASTA says. Data has shownAs the Mexican seed sector comes to accounting for gains from lower GM cornthat existing international regulatoryterms with the new decree, Osorio said a prices after a GM corn ban from Mexico. uncertainty has stifled the developmentfew things came to mind.and commercialization of biotech prod- First: most corn seed companies in Source: Sept. 2022 World Prospectiveucts. Over the past 20 years, biotechMexico had already stopped sales of GM Report, Consumer Price Impacts ofresearch and development efforts beencorn seed prior to the initial decree in Mexican Restrictions on GM Corn: Andiverted away from many crops due to2021.Economic Analysis high regulatory compliance costs. FromThis is due to the fact that a group 24/ SEEDWORLD.COMLATAM'