Mexico to Abandon Plan to Cut Yellow Corn Imports, New Agriculture Minister Asserts

By Adriana Barrera and Cassandra Garrison

MEXICO CITY (Reuters) – Mexico’s incoming administration will abandon a key objective of outgoing President Andres Manuel Lopez Obrador, which aimed to reduce imports of yellow corn and achieve self-sufficiency in its production. This announcement comes from the newly appointed agriculture minister, Julio Berdegue.

Berdegue, who is set to serve in the cabinet of President-elect Claudia Sheinbaum, indicated that the focus will shift to maintaining self-sufficiency in white corn, primarily used for making tortillas, a staple in Mexican cuisine.

In addition, Sheinbaum has set an “aspirational goal” of halving deforestation linked to the agricultural sector by the conclusion of her six-year term, Berdegue stated in a Friday interview. He acknowledged the challenge, with estimates suggesting that approximately 200,000 hectares of forest are lost annually due to land being cleared for lucrative avocado farming and livestock production.

During Lopez Obrador’s term, Mexico sought to significantly cut down on yellow corn imports, predominantly sourced from the U.S., while promoting local production. However, the government was unable to reduce the nearly $6 billion it spends on yellow corn imports each year.

This policy arose from Lopez Obrador’s efforts to limit the use of genetically modified (GM) corn, which has led to an ongoing trade dispute with the U.S., Mexico’s largest commercial partner. Most of the imported yellow corn is genetically modified and used as animal feed in Mexico’s livestock industry. Lopez Obrador’s administration had already modified its ban on GM corn to restrict it only for human consumption.

Sheinbaum, who is set to assume office in October, will not pursue the goal of replacing yellow corn imports with domestic production, marking a notable departure from Lopez Obrador’s established policies. Berdegue emphasized, “Our objective is not to reduce imports; our objective is to produce more.”

He also added, “Our goal is not self-sufficiency in yellow corn… not in this six-year term.”

According to Berdegue, Mexico is likely to continue importing substantial quantities of yellow corn due to increasing demand in the livestock sector, driven by a rising appetite for meat products among the population.

A trade panel under the USMCA trade agreement is expected to deliver a formal ruling regarding the dispute over Mexico’s GM corn policy by year’s end. The U.S. contends that Mexico’s plan to limit GM corn is unscientific and breaches trade commitments, while Mexico maintains that its policy does not negatively affect its commercial relationship with the U.S.