For many years prior to NAFTA, the seed sector was free of tariffs and only regulated by phytosanitary considerations. The seed industry had already been placed in a free competition model. As a result, not many direct effects were felt.

As consumer crops and products are freed from tariffs, the Mexican farmers are forced to compete against foreign agriculture on a equal basis. This has been catastrophic for our sector, especially when you consider that these years of tariff reduction and elimination have coincided with some of the worst ever oversupplies and low prices for basic food products such as wheat, corn, milk, rice and sorghum.

The tariff free entry at CCC credit terms and prices of products such as these, plus the lack of a sound subsidy and support program for over 35 million Mexicans who live off the land, has proven that the primary sector of our economy was not ready for the free market competition which NAFTA introduced.

The lack of a profitable customer who can pay for quality seeds in order to compete has dramatically affected the seed sector in Mexico as a side effect of NAFTA.