US to Monitor Mexico’s GM Crop Regulations for Trade Compliance

The United States will continue monitoring Mexico’s GMO crop regulations to ensure trade agreement compliance. Meanwhile, reinstating tariffs on Mexican and Canadian goods could significantly raise food prices in the United States affecting consumers, analysts warn. 

This is the Week in Agribusiness!

US to Continue Monitoring Mexico’s GMO Crop Regulations

The United States has reaffirmed its commitment to monitoring Mexico’s regulation of genetically modified (GM) crops to ensure scientific compliance and market access under USMCA. This follows Mexico’s suspension of restrictions on GM corn after a dispute panel ruling, effectively invalidating two major bans on GM corn use in food products. While the USTR emphasizes science-based regulation, concerns over environmental and health risks related to GMOs persist, prompting ongoing discussions in Mexico regarding the potential constitutional reform to protect GMO-free cultivation.

Tariffs Could Spike Food Prices in the US

The United States has temporarily paused 25% tariffs on Mexican and Canadian goods following agreements with Mexico’s President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau on Feb. 3, 2025. However, analysts warn that if the tariffs are reinstated, US consumers, already facing a 25% increase in grocery prices since the pandemic, could see significant price hikes, especially on Mexican fruits, vegetables, and other agricultural imports. The US Department of Agriculture predicts continued food price increases in 2025, putting further strain on families' grocery bills.

Climate Change Threatens Food Security in Latin America: UN

Climate change is significantly affecting food security in Latin America and the Caribbean, with the region ranked as the second most exposed to extreme climate events, after Asia. A UN report highlights that over half of the region's countries are vulnerable to undernourishment due to climate-related events, particularly impacting rural communities and women. While food insecurity has decreased slightly overall, the region faces challenges in accessing healthy diets, with millions unable to afford them despite being major food producers, emphasizing the need for comprehensive policies to strengthen agri-food systems and support vulnerable populations.

Mexico Launches Fertilizer Distribution Program in Michoacan

The Ministry of Agriculture and Rural Development (SADER) has launched the Fertilizers for Well-Being program in Michoacan to support 74,252 small-scale farmers and enhance food sovereignty. The program provides free fertilizer directly to farmers, prioritizing staple crops like corn and beans, with 1Mt of fertilizer set to be distributed nationwide this year. 

US Tariffs Could Impact Asian Food Businesses in Sinaloa

The potential reinstatement of US tariffs could significantly affect Asian food businesses in Sinaloa, which rely heavily on imported ingredients from the United States, according to CANIRAC. Laura Guzmán, President, CANIRAC expressed concerns over the impact on businesses that purchase essential supplies like bakery ingredients and dressings from the US. While hopeful for positive negotiations, Guzmán suggested that Mexico should use this challenge as an opportunity to strengthen its domestic market.