b'Mexico is one of our oldest and strongest trad- The dispute mechanisms in trade agreements ing partners. Their decision to ban GM corn is notlike the USMCA were negotiated to ensure that only disappointing, it is not based in science and ittrade barriers do not prevent U.S. farmers from is out of step with the commitments they agreedaccessing innovative tools. Seed innovations are to under USMCA, ASTA says, in an emailed state- necessary to sustainably produce food for our ment to Seed World. The United States has a longever-growing world population, ASTA says. track record of using GM corn. Numerous studies have demonstrated that GM corn is safe for use inMexico Reacts 32,217 food and safe for cultivation in the environment.In response to the change, Osorio said a fewis the amount of jobs Mexicos recent actions also contradict its previ- things came to mind.potentially lost if ously long and predictable track record of approv- First: most corn seed companies in Mexico hadMexico bans GM corn.ing GM corn products. already stopped sales of GM corn seed prior to the ASTA says many stakeholders along the corninitial legislation in 2021. value chain are still grappling with how the ban willThis is due to the fact that a group filed a be felt by U.S. companies.lawsuit in 2013 with the purpose of claiming that$3.56 For the seed sector, Mexicos proposed banthe planting of genetically modified corn affectsbillion is the projected threatens to lead to a chilling effect in crop innova- biological diversity, as well as the rights to foodamount of economic tion, because it introduces significant uncertaintyand health, he says. This trial is still ongoing, thatloss in the first year into the industrys ability to develop geneticallyis, there is still no final sentence, however, there isof the ban to the U.S. improved corn varieties using biotechnology,a provisional measure since 2013, which preventscorn industry. ASTA says. Data has shown that existing inter- the planting of genetically modified corn. For this national regulatory uncertainty has stifled thereason, the companies have opted to sell seeds of development and commercialization of bio- hybrid maize and are currently working with them.tech products. Over the past 20 years, biotechOne of the other stated reasons for this legis- $7.65research and development efforts been divertedlation was to help protect native Mexican cornbillion is the projected away from many crops due to high regulatoryspecies, as Osorio mentioned previously. amount of losses the compliance costs. From 2005-2015, regulatoryHowever, most corn planted and grown inU.S. corn wet milling asynchrony in major markets caused regulatoryMexico doesnt fall into nativeinstead, Osorioindustry would suffer costs to increase 50% for row crops (Cossey, 2016;mentions that growers tend to favor hybrid cornfrom the GM corn ban Kalaitzandonakes, et al. 2016). Larger regulatoryproduction for a few different reasons. over a 10-year forecast costs affect small market crops and small, innovat- Despite the fact that Mexico has an enormousperiod. ing firms disproportionately, leading to greaterlarge-scale maize production, this production is not industry concentration and a possible lack of com- of native maize, but hybrid maize, he says. Due to petition (Sachs 2016; Fuglie, et al., 2011). their characteristics, native maize is not attractive But, more broadly, the association believes theto large-scale producers, since not only it does not$521.5 seed sector supports major industries that standhave high yields, but its use is very limited, in suchmillion is the net to loses significant amounts of revenue shoulda way that this type of maize is mainly in the handsloss the U.S. ethanol Mexico walk away from GM corn. Particularly, theof peasant communities. It is important to note thatindustry (including corn farming, corn wet milling, ethanol, and trans- this type of maize cannot compete with hybrids inDDGS) would incur portation sectors would feel the biggest effects interms of resistance and productivity. after accounting for Mexiconot only raising Mexicos food prices, butGrowers in Mexico remain concerned withgains from lower GM also inhibiting Mexican farmers from accessing thelonger term productivity in the corn industry.corn prices after a GM most innovative seeds. The ban would also haveOsorio sees one concern coming to mind: produc- corn ban from Mexico.widespread effects on the U.S. economy as well. ers are concerned with the disadvantages they see Studies show that over the 10-year forecastin relation to productivity with other countries thatSource: Sept. 2022 period, the Mexican ban on GM corn could causehave access to GM seeds. For the moment though,World Prospective the U.S. economy to lose $73.89 billion in eco- producers arent demanding GM technology Report, Consumer nomic output, and GDP could contract by $30.55instead, theyre seeking more robust hybrids.Price Impacts of billion over 10 years. Additionally, the U.S. couldMexican producers do not have access to GMMexican Restrictions lose 32,217 jobs annually with labor income fallingseeds, since seed companies do not have them inon GM Corn: An $18.38 billion, ASTA says.their portfolios in Mexico, Osorio says. It is notEconomic AnalysisASTA was pleased to see that the USTR willexpected that there will be changes in the behavior begin technical consultations with Mexico underof the corn seed trade, since I reiterate that there is USMCA. While the outcomes havent come to lightno offer of genetically modified corn seeds in the yet, this sends a signal on trade enforcement. portfolios of the seed companies.SW40/ SEEDWORLD.COMJUNE 2023'