Mexico Reaches Corn Import Records Amid Government Restrictions

Mexico set a record in corn imports during the 2022-2023 season despite temporary tariffs on white corn and GMO restrictions imposed by the federal government. 

According to estimates from the US Department of Agriculture (USDA), corn imports in Mexico rose from 17.5 million t during the 2021-2022 cycle to 18 million tons in 2022-2023. These numbers were reached despite Mexico's restriction on GMO corn imports, a matter that is currently being discussed under USMCA’s resolution panel. According to Raquel Buenrostro, Minister of Economy, the final resolution from the panel will be announced in March 2024, as reported by MBN. 

In June, the Mexican government implemented temporary 50% tariffs on white corn imports and exports, which will remain in effect until the end of 2023. This measure aims to control the supply, production and price of white corn in Mexico to manage the prices of various consumer products derived from the grain, primarily tortillas. Nonetheless, the tariff does not apply to US corn due to the existing free market commitments under USMCA.

From October 2022 to July 2023, white corn exports from the US to Mexico decreased by approximately 75% compared to the average exports from the 2012-2013 to 2021-2022 seasons. However, USDA noted that Mexico’s corn imports in 2023-2024 will increase to 18.2 million t, which could pose a benefit for US producers. 

Furthermore, the estimated domestic production for the 2022-2023 cycle is 28 million tons, a record year, according to updated USDA data. From 2023 to 2024, a 2.1% decrease in production is anticipated, resulting in a total of 27.4 million t of corn, with a minor increase in the planted area.

For the remaining of 2023 and early 2024, the "super peso" which has bolstered Mexico's import prospects since late 2022, will depreciate to more average levels. As a result, farmers in the northern parts of the country may consider switching some of their corn planting to alternative crops with lower water requirements such as wheat, sunflower, safflower, chickpeas and barley.