TRADE UPDATE: Food & Agriculture | July 9th, 2024

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, Isabella Montero, Communications Intern, Molly Shields, Government Relations Intern

HIGHLIGHTS

U.S.-Mexico: As Mexico’s newly elected Sheinbaum Administration details its positions on corn, it appears to be sticking to President Andrés Manuel López Obrador’s policies to ban cultivation of genetically engineered (GE) corn and become self-sufficient in white corn production. The new position acknowledges the need for imports of yellow GE corn for animal feed and industrial uses but aims to improve Mexico’s production.?

World Trade Organization: The WTO held a two-day workshop on contemporary challenges in agriculture in the context of the WTO negotiations, showing continued attempts at making progress in stalled agriculture negotiations.

Agricultural Outlook: The OECD and FAO released the Agricultural Outlook report for 2024-2033, noting some significant medium-term shifts in agricultural commodity markets. The report also predicts growth in agricultural trade will slow down and export growth will stabilize.?

U.S.-Philippines: On July 2, the United States and Philippines met under the Trade and Investment Framework Agreement (TIFA) to discuss a “range of bilateral trade and investment issues, including agriculture, labor, government procurement, intellectual property, environment, automotive safety standards, and supply chains.”

“There is an urgent need to ensure that trade in food and agriculture contributes to ensuring everyone can access sufficient, safe, and nutritious food at all times… We should use every single means to try to get a breakthrough.” - WTO Director-General Ngozi Okonjo-Iweala in her opening statements of a two-day agriculture workshop

US-MEXICO

Sheinbaum’s Corn Policies Outline

As Mexico’s newly elected Sheinbaum Administration details its positions on corn, it appears to be sticking to President Andrés Manuel López Obrador’s polices to ban cultivation of genetically engineered corn and encourage the country to become self-sufficient in white corn production.

The newly presented Sheinbaum position acknowledges the need for imports of yellow corn for animal feed and industrial uses but aims to improve Mexico’s production.?

On July 1, Julio Berdegué, Mexico’s next Secretary of Agriculture, outlined this position in conversations with media outlets and in a five-point post on Twitter/X.? As translated, the post states “The policy on corn in the government of the President @claudiashein can be summarized in five points:

1. The cultivation of transgenic corn, of any type, and for any use, will not be permitted in Mexico.
2. We will be self-sufficient in non-transgenic white corn for human consumption. We do not need to import the corn that is the basis of our diet.?
3. We will promote the production of non-transgenic yellow corn in MX. If we produce more, we will import less yellow corn.
4. We adhere to the decree of President Lopez Obrador of 2/13/23, where he says that “…authorizations of genetically modified corn for animal feed and industrial use may be granted…”
5. Because it is of national and global interest, we will promote the conservation, production and use of our native corn as well as the well-being of the peasant and indigenous communities that care for, conserve, and cultivate them.”

In an interview with Reuters, Berdegué shared, “Our objective is not to reduce imports, our objective is to produce more. Our goal is not self-sufficiency in yellow corn ... not in this six-year term.” An increased demand for meat products is expected to increase Mexico’s reliance on U.S. yellow corn for livestock feed.

A United States-Mexico-Canada Agreement (USMCA) trade panel is scheduled to rule on Mexico’s GM corn dispute by the end of the year.

Sheinbaum’s inauguration is scheduled for the beginning of October.

WORLD TRADE ORGANIZATION

Examining Agriculture’s Contemporary Challenges

The WTO held a two-day workshop on contemporary challenges in agriculture in the context of the WTO negotiations, showing continued attempts at making progress in stalled agriculture negotiations.

External speakers joined the July 1-2 events for discussions on sustainability, food security, poverty alleviation, and the underlying concepts in the Agreement on Agriculture and the current negotiating structure.

The event concluded with a roundtable discussion of key takeaways and the way forward among WTO Members and the audience.

“There is an urgent need to ensure that trade in food and agriculture contributes to ensuring everyone can access sufficient, safe, and nutritious food at all times,” said WTO Director-General Ngozi Okonjo-Iweala in her opening statements. “We should use every single means to try to get a breakthrough.”

OECD-FAO

Agricultural Outlook 2024-2033

The OECD and FAO released the Agricultural Outlook report for 2024-2033, noting some significant medium-term shifts in agricultural commodity markets.

The report concludes India and Southeast Asia will increasingly drive changes in agricultural consumption while China’s role wanes.?

The report projects agriculture’s global greenhouse gas emission will increase by 5%, but anticipates productivity improvements will contribute to an overall decline in emission intensity.?

The report also predicts that growth in agricultural trade will slow down and export growth will stabilize. The report is specifically focused on commodity markets. Trade in processed agricultural products continues to increase.

US-PHILIPPINES

Bilateral Trade Discussions

On July 2, the United States and Philippines met under the 1989 Trade and Investment Framework Agreement (TIFA) to discuss bilateral trade and investment issues, including agriculture, labor, government procurement, intellectual property, environment, automotive safety standards, and supply chains.

The meeting was co-chaired by Assistant U.S. Trade Representative for Southeast Asia Sarah Ellerman and the Philippine Department of Trade and Industry Undersecretary for International Trade Group Allan Gepty.

This meeting expanded on the TIFA Labor Working Group meetings held previously, regarding internationally recognized labor rights and worker’s rights.

According to USTR’s press release, the parties discussed how to strengthen agricultural trade, agricultural biotechnology goals, and meeting food security and sustainability quotas in both countries.

According to USDA Global Trade Atlas, the United States exported over $3.61 billion in agricultural and related products to the Philippines in 2023, including more than $1.2 billion in soybean meal.

The United States imported over $1.2 billion in agricultural and related products from the Philippines in 2023, including over $212 million in fruit and vegetable juices.