A new economic impact report shows Mexico’s looming ban on GM corn and agricultural biotechnology policy will harm economies on both sides of the U.S.-Mexican border and worsen food security for Mexico’s citizens just as inflation and strained supply chains are impacting consumers around the world.
“The proposed ban will force North American grain handling systems into two streams (GM and non-GM corn), an approach that is costlier, disincentivizes innovation and subjects supply chains to greater volatility,” finds the report, prepared by World Perspectives Inc. for CropLife International.
What does Mexico have to gain from the ban? Not much, according to the report.
Mexico’s decision brings “little or no value creation as a direct result of the new policy,” says the report. Furthermore, the ban “acts as a trade protectionist measure” against farmers in the U.S. and other exporting countries.
“The answer is simple: without something intrinsic in the process that will add value, the corn marketing chain will eventually pass along the costs to consumers, both in the U.S. and Mexico,” explains the report.
