Mexican President Moves to Prioritize Domestic Corn for Tortillas

MEXICO CITY (Reuters) -Mexico’s president announced on Monday he will sign an agreement this week with makers of the country’s food staple tortillas that ensures they only use non-genetically modified (GM) white corn while also setting new tariffs on imports of the grain.

Tariffs on white corn imports from countries that do not have trade deals with Mexico will promote more domestic purchases, he argued, but without saying if the restrictions might push prices up.

Mexico, the birthplace of modern corn, is mostly self-sufficient in white corn, but does import massive quantities of yellow corn largely used for livestock.

The country is also embroiled in a trade dispute with the United States over President Andres Manuel Lopez Obrador’s decree to limit the use of GM corn, particularly for human consumption, since nearly all the imports come from U.S. suppliers.

The U.S. and Canada requested trade dispute settlement consultations, arguing that Mexico’s policies are not science-based and will hurt the North American market.