US Requests Consultation Period Over Mexico’s GMO Policies
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US Requests Consultation Period Over Mexico’s GMO Policies

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Eliza Galeana By Eliza Galeana | Junior Journalist & Industry Analyst - Wed, 03/08/2023 - 12:43

Among this week’s top stories, The US has requested formal trade consultations with Mexico over their GM-corn dispute. Meanwhile, President López Obrador proposed a plan to fight food insecurity along with other Latin American countries.

Ready for more? Here is your weekly roundup!

US Demands Formal Consultations With Mexico Over GMO Corn Dispute

The US has requested formal trade consultations with Mexico over objections to the latter country’s plans to limit imports of genetically modified corn and other agricultural biotechnology products. The consultations are the first formal step before requesting a dispute settlement panel under the USMCA, which could lead to retaliatory tariffs if the dispute is not resolved. 

AMLO’s Plan to Confront Food Inflation in Latin America

President López Obrador announced that his government would "carry out an anti-inflationary plan of mutual aid and growth for economic and commercial exchange between Latin American countries." According to López Obrador, leaders from Colombia, Brazil, Cuba, Argentina, among other Latin countries will meet remotely on April 5, 2023 and then hold an in-person meeting to discuss the plan in further detail. Furthermore, the president underscored that the economic agreement will include the participation of producers, distributors, traders and importers from the region.

In 2023, Mexico's Ranking in Global Food Production Will Drop

The Agricultural Markets Advisory Group announced that in 2023, Mexico will drop from ninth to tenth place in the list of the world’s largest food producers. During 2022, grains and oilseeds production in Mexico were affected by agroclimatic conditions and market volatility, resulting in annual production of 40.3 million t. GCMA urged the Mexican government to take action and support the growth of the agricultural sector. 

Trade Restrictions: Helpful or Harmful?

According to the World Trade Organization economic measures adopted to face the Ukraine war and the pandemic, ended up causing further economic uncertainty within the international trading system, exacerbating food insecurity for many developing and least-developed countries. Analysts expect inflationary pressures on food to diminish during 2023, but tensions in Europe remain a risk factor.

Milk Imports From the US Put Small Producers in Mexico at Risk

The US Department of Agriculture reported that by the end of 3Q22, dairy exports from the US to Mexico showed 33.2% growth against 2021. Cream and milk powder were the products with the highest trade index, with sales representing US$1.269 billion. Daniel Ruiz, Dairy Livestock Production Manager, PROAN (Animal Protein) warned that dairy imports risk the livelihood of small dairy producers in Mexico. 

Safety: Key Priority for the Avocado Industry 

This week’s Expert Contributor, José Armando López, CEO, Association of Avocado Exporting Producers and Packers of Mexico, talks about the importance of food safety in the avocado industry. According to López, APEAM adheres to a Binational Work Plan to ensure that all products arriving in the US meet necessary characteristics to maintain social welfare through food. Moreover, he points out that avocado production is monitored through a traceability system that allows food to be tracked at all stages of the productive chain.

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