Avellon Williams
MEXICO- The Mexican government began imposing a 50% tariff on white corn imports on Saturday, a move aimed at boosting national production and preventing genetically modified corn imports.
Published late Friday in the Mexican government’s official gazette, the measure will remain in effect until the end of the year. It coincides with a trade dispute between Mexico and its North American trade partners, Canada and the United States.
In an effort to control inflation, the Mexican government exempted white corn from tariffs earlier this year. However, the decree states that the decision “has not generated a significant impact on the decrease in prices in the national market, so it’s considered appropriate to eliminate it.”
As of May, the Mexican government considers inflation to be more or less under control at 5.84%.
Some white corn – the kind used for human consumption – is imported from Mexico, primarily from South Africa and the United States. The tariff, however, could complicate the trade dispute that Mexico already has with the U.S. and Canada over GM corn since it contradicts the U.S.-Mexico-Canada free trade agreement.
Mexico wants to restrict the consumption of GM white corn for humans and eventually veto the use of GM yellow corn for animal feed as well. As a result, the U.S. and Canada say that trade in the region would be adversely affected. Over the past few years, Mexico has imported $3 billion worth of GM feed corn from the U.S.
It has been agreed by both the United States and Canada that Mexico’s fears about genetically modified corn are unfounded.
Canada announced earlier this month that it would join a trade dispute panel that the United States requested over Mexican limits on genetically modified corn imports. Following the failure of talks with the Mexican government, the U.S. government requested that the dispute process be formally opened on June 2.
Approximately six months would be given to a panel of experts to study the complaint and release its findings. If Mexico violates the U.S.-Mexico-Canada free trade agreement, trade sanctions could be imposed.
The President of Mexico, Andrés Manuel López Obrador, has insisted on the use of only domestic white corn for human consumption, saying he is not afraid of controversy.
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