Voluntary Report - public distribution

**Date:** 11/12/2003

**GAIN Report Number:** MX3152

MX3152

**Mexico**

**Agricultural Situation**

**Weekly Highlights & Hot Bites, Issue #51**

**2003**

**Approved by:**

![](media/image1.wmf)William L. Brant

#### U.S. Embassy

**Prepared by:**

Bruce Zanin, Benjamin Juarez and Dulce Flores

**Report Highlights:**

\*MEXICO SUSPENDS MORATORIUM TO PLANT TRANSGENIC CORN FOR EXPERIMENTAL
PURPOSES

\*THE SUGAR-HFCS DISPUTE CONTINUES\...

\*ECONOMY MINISTRY DISCARDS CHANGES IN MEXICAN EXPORT STANDARDS

\*U.S. LAW ON BIO TERRORISM BUREAUCRATIZES MEXICAN EXPORTS

\*PROPOSED RULE ON COUNTRY OF ORIGIN LABELING

\*IT WOULD BE \"SUICIDE\" TO SUSPEND SIGNING NEW FREE TRADE AGREEMENTS

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Mexico \[MX1\]

\[MX\]

Welcome to Hot Bites from Mexico, a weekly review of issues of interest
to the U.S. agricultural community. The topics covered in this report
reflect developments in Mexico that have been garnered during travel
around the country, reported in the media, or offered by host country
officials and agricultural analysts. Readers should understand that
press articles are included in this report to provide insights into the
Mexican \"mood\" facing U.S. agricultural exporters. Significant issues
will be expanded upon in subsequent reports from this office.

DISCLAIMER: Any press summary contained herein does NOT reflect USDA's,
the U.S. Embassy's, or any other U.S. Government agency's point of view
or official policy.

MEXICO SUSPENDS MORATORIUM TO PLANT TRANSGENIC CORN FOR EXPERIMENTAL
PURPOSES

The GOM decided to suspend the moratorium, in place since 1998, on
planting transgenic corn for experimental purposes. The Director of
International Affairs of the Agriculture Ministry, Victor Manuel
Villalobos, stated that this decision was made after a consensus among
the Secretariat members of the Inter-Secretarial Commission and
Genetically Modified Organisms (CIBIOGEM). Villalobos said the
moratorium would continue, however, on the planting of transgenic corn
for commercial purposes. He also said that, as when the "de facto"
moratorium was initiated five years ago without any official
announcement, it is now cancelled in the same manner. (Source: *El
Financiero*, 11/04/03)

THE SUGAR-HFCS DISPUTE CONTINUES....

According to a local newspaper article, two letters have been sent
urging the Mexican and U.S. governments to find a solution to the
sugar-HFCS dispute. One letter addressed to Luis Ernesto Derbez,
Secretary of Foreign Affairs in Mexico, is from Richard C. Lugar,
President of the Foreign Affairs Committee of the U.S. Senate; the other
letter addressed to Robert Zoellick, U.S. Trade Representative, is from
Bob Goodlatte, President of the Agricultural Committee of the U.S. House
of Representatives. Both letters requested an immediate solution to the
sugar-HFCS dispute and indicated that the U.S. Congress is becoming
impatient with the current impasse. (Source: *Financiero*, 11/03/03)

ECONOMY MINISTRY DISCARDS CHANGES IN MEXICAN EXPORT STANDARDS

The General Director of Standards of the Economy Secretariat, Miguel
Aguilar-Romo, stated that the new U.S. regulations on food imports
should be considered as a security matter and not as a trade issue. He
discarded the notion that as a result of these regulations, which will
go into effect on December 12, 2003, the Mexican authorities will be
forced to modify the current standards because of security reasons.
(Source: *El Financiero*, 11/03/03)

# U.S. LAW ON BIO TERRORISM BUREAUCRATIZES MEXICAN EXPORTS

Some in the GOM say that the U.S. Bio Terrorism law contains rules that
could bureaucratize the export process and create problems for Mexican
agricultural exporters. Officials of the Economy Secretariat, however,
argue that this law should be in accordance with NAFTA as well as with
the World Trade Organization provisions. (Source*: El Universal, El
Financiero*, and *Milenio*, 10/27/03)

**PROPOSED RULE ON COUNTRY OF ORIGIN LABELING**

The Mexican National Association of Food Producers (AMEPA) published an
e-mail article on AMS's proposed rule on Country of Origin Labeling.
According to the article, Country of Origin Labeling will be required on
fresh beef, pork and lamb; fresh and frozen fruits and vegetables; wild
and farm-raised seafood; and peanuts. The rules under which a food item
can be labeled "Product of the United States" were also outlined. The
article stated that USDA published the proposed regulations late because
of the controversy surrounding Country of Origin Labeling in the United
States. The article concluded that this controversy caused the U.S.
Congress to prohibit USDA from expending funds on the implementation of
the regulations, thereby putting into doubt the actual application of
the proposed rule. (Source: *AMEPA News*, 11/6/03)

IT WOULD BE \"SUICIDE\" TO SUSPEND SIGNING NEW FREE TRADE AGREEMENTS

Alina Aldape, Deputy Coordinator of the Foreign Trade Businessman
Organisms (COECE) stated that it could be suicide for Mexico to suspend
its strategy of continuing to sign free trade agreements. She pointed
out that China and the United States have begun the strategy of
negotiating free trade agreements. She stated that Mexico could no
longer base its foreign trade in just one country (the United States).
She also said that the competitive advantages that Mexico obtained ten
years ago through NAFTA have been vanishing because of the free trade
agreements that the United States has signed with other countries.
(Source: *El Financiero*, 11/03/03)

REPORTS RECENTLY SUBMITTED BY FAS/MEXICO CITY

+-------------+--------------------------------------------+----------+
| ##          | ###### Title                               | **Date** |
| #### Number |                                            |          |
+-------------+--------------------------------------------+----------+
| MX3150      | Weekly Highlights & Hot Bites Issue #50    | 11/4/03  |
+-------------+--------------------------------------------+----------+
| MX3151      | Mexico Promulgates the Cartagena Protocol  | 11/10/03 |
|             | on Bio Safety                              |          |
+-------------+--------------------------------------------+----------+

We are available at **<http://www.fas-la.com/mexico>** or visit our
headquarters' home page at **http://www.fas.usda.gov** for a complete
selection of FAS\' worldwide agricultural reporting.

**FAS/MEXICO EMAIL**

To reach us at FAS/Mexico City:

**[AgMexico@usda.gov]{.underline} and/or <ATOMexico@usda.gov>**