Impacts of Mexico’s Proposed Ban of Genetically Modified Corn Imports on Global Markets

This study analyzes the effects of the proposed Mexican import ban of GM corn on Mexican, US, and global corn markets. This import ban would have caused considerable trade reallocations. Mexico would have had to import from France, Colombia, and Indonesia to fill the void left by lost imports from the United States. In turn, the United States would have had to divert its lost export sales in Mexico to Japan, Colombia, South Korea, and itself. Because of these trade reallocations, Mexico would have imported from more expensive sources. The United States would have exported to distant countries. Welfare would have decreased in many countries, with Mexico incurring large losses.