Mexico lifts ban on GMO corn imports amid US tariff threats

The Mexican government officially lifted its ban on GMO corn imports, which could potentially be a move to ease the tension created with the US regarding tariff threats, sources said.

"The agreement derives from the fact that we failed to show during the panel that GMO corn is hazardous to human, animal, and environmental health. This also allows to maintain the trade relationship (with the US) of the USMCA," said Juan Carlos Anaya, CEO from the Agricultural Markets Consulting Group.

"It eases the relations with the Trump administration and allows the US to continue to export GMO yellow and white corn to Mexico," Anaya added.

The agreement, published Feb. 5 on the official gazette, voids articles of the decree issued in February 2023 related to glyphosate, and genetically modified corn.

According to the USDA'S weekly Export Sales Report from the week of January 24-30, corn net sales to Mexico totaled 403,205 mt, up 28% over the previous week, amounting to a total commitment of 16.42 million mt.

The ban lift comes into force days after the US and Mexico reached an agreement to postpone the implementation of tariffs on Mexican goods that President Donald Trump had announced Feb. 2 but then quickly reversed course on. In exchange for the deferment, Mexico committed to secure the border with 10,000 soldiers of its national guard and work with the US to stop fentanyl traffic.

"Mexico is trying to pave the way in the negotiations with the US President regarding the tariff situation," a source said, "this change is sending positive signals to him."

The result of the discussions that led to the GMO corn ban-lifting agreement was considered "a major win" for US farmers, who will now be able to resume GMO corn exports to Mexico, the Iowa Corn Association said in a statement at the end of December.

"Iowa's farmers rely heavily on trade and corn exports to Mexico," said Stu Swanson, Iowa Corn Growers Association President and farmer on the release, "that's why we joined other states and NCGA grower leaders in pushing USTR to challenge this ban. Mexico is a key market for corn in all forms and it has been an important push to remove barriers to allow trade."

Besides the regulation change that could increase exports of US GMO corn to Mexico, domestic production in that country is facing droughts and hydric stress in several producing states, which could result in higher import levels.

"Mexican imports in 2025 will be larger because of the fall in national production, mainly due to droughts. We will have a deficit of 500,000-700,000 mt in white corn, which we hadn't seen since 1994," said Anaya.