New Presidents, New Laws: What This Means for Regulations in Three LATAM Countries

By Alexandre Quesada

With newly appointed governmental leaders and new regulations and laws put into place, this year is presenting many opportunities and challenges within three countries: Mexico, Argentina, and Brazil. Here is an overview of what is happening with regulations in these three countries.

MEXICO
Lifts Restrictions on Genetically Modified Corn Established by 2020 Decree

On December 31, 2020, the Mexican government introduced a decree for the gradual phase-out of the use, acquisition, distribution, promotion, and importation of glyphosate and related compounds by January 31, 2024. This decree also revoked the release of genetically modified corn seeds for human consumption. The primary objective was to implement new legal frameworks for replacing glyphosate and genetically modified corn by the first half of 2023.

This created significant concern due to Mexico’s current corn production deficit for animal feed and industrial applications, leading to a need for clarification regarding the decree’s scope, particularly concerning imported corn.

Despite limiting restrictions to human consumption in 2023, the United States initiated a dispute settlement panel under the U.S.-Mexico-Canada Agreement (USMCA), arguing that the scientifically unsubstantiated restriction violated the agreement’s rules. Following Mexico’s loss in the panel at the end of 2024, the government announced the removal of these restrictions in February 2025.

Developments

On February 13, 2023, a new decree clarified that the restrictions applied solely to human consumption. It allowed genetically modified corn for animal feed and industrial use until January 31, 2024, with provisions for extension if Mexico’s self-sufficiency in yellow corn was not achieved.

As the second-largest corn importer globally, behind China, Mexico faced significant trade implications. In 2023, it imported $5.2 billion worth of corn, totaling 17.5 million tons, primarily from the United States. In 2024, imports from the U.S. alone surged to a record 25.3 million tons, valued at $5.6 billion, prompting the U.S.—and later Canada—to challenge the Mexican decree through the USMCA Council.

On December 20, 2024, the dispute panel report concluded that Mexico’s decree lacked adequate risk assessment as per international scientific standards. Subsequently, on February 5, 2025, the Mexican government repealed the 2023 decree. This rescission restored the possibility of authorizing genetically modified corn for human consumption and halted the progressive replacement of such corn for animal feed and industrial use.

The strategic reversal reflects Mexico’s need to balance international trade obligations and domestic agricultural needs. Moving forward, the focus may shift toward establishing rigorous risk assessments and scientific research to support any future regulatory changes concerning genetically modified crops.

ARGENTINA
Agricultural Sector: Navigating Economic Shifts, Regulatory Dynamics, and Export Duty Reductions

The agricultural sector in Argentina remains a cornerstone of the national economy, contributing approximately 60% of the country’s total exports. However, this sector is operating within an increasingly complex landscape shaped by economic, regulatory, climatic, and market factors.

In 2024, Argentina experienced a historic low in mass consumption, plummeting by 17%. Meat consumption, a key indicator, fell to 47.8 kg per capita, the lowest level in three decades. This decline in consumption has contributed to a downward trend in inflation. As of January 2025, monthly inflation stood at 2.2%, with annual inflation at 84.5%, a significant decrease from the peak of 117.8% in 2024.

Currency volatility remains a concern, with the official exchange rate projected to reach 1,348 ARS by December 2025. The persistent gap between the official and parallel (“blue”) dollar rates continues to generate uncertainty in international transactions.

A significant policy change occurred in January 2025 with the elimination of the PAIS Tax on imports. This measure reduces import costs by 35% and is expected to benefit local producers who rely on foreign inputs and machinery, thereby encouraging investment and reducing production costs.

Regulatory Changes

Several regulatory updates are impacting the agricultural sector. Resolution 350/99 has been updated to include revised criteria for registering agrochemical products, incorporating new international standards for evaluating product safety and efficacy, and improving traceability and monitoring processes to enhance market transparency.

Resolution 694/204, effective since June 2024, aims to harmonize local regulations with international standards by recognizing the equivalence of technical-grade active substances already approved in countries such as the U.S., Mexico, the European Union, the United Kingdom, Australia, New Zealand, and Brazil. This is expected to facilitate the import of high-quality agrochemical products and enhance the competitiveness of Argentina’s agricultural sector.

Agrochemical Products and Bankruptcy

Agrochemicals are essential inputs for agricultural development in Argentina. The most commonly used products include:

• Herbicides: Glyphosate (annual consumption of approximately 200,000 tons) and 2,4-D (estimated annual usage of 30,000 tons).
• Insecticides: Chlorpyrifos (around 12,000 tons consumed annually) and Lambda-Cyhalothrin (consumption of about 8,000 tons).
• Fungicides: Carbendazim (5,000 tons per year).

In December 2024, key companies in the agrochemical sector—Los Grobo, Agrofina, and Surcos—filed for bankruptcy due to financial difficulties, accumulated debts (Los Grobo and Agrofina: $200 million USD; Surcos: $3.5 million USD), and a significant drop in agrochemical demand.

This has led to local shortages of essential inputs and rising prices. However, the reduction in the availability of agricultural inputs creates a positive environment for importing agrochemical products, which is further facilitated by the elimination of the PAIS Tax, strengthening the sector’s competitiveness by lowering costs.

Opportunities and Challenges

The Argentine agricultural sector faces difficulties, but also some opportunities like favorable conditions for importing inputs due to internal shortages and the 35% cost reduction on imports. There are also increased access to advanced agricultural technologies driven by recent tax reforms. The reduction in export duties could also stimulate agricultural production and exports.

Some of the challenges include currency volatility, climate change affecting crop production projections, and potential inflation due to a rebound in consumption.

The Argentine agricultural sector is at a critical juncture, balancing economic, regulatory, and climatic challenges with unique opportunities arising from recent reforms, favorable international contexts, and adjustments in export duties.

The combination of more accessible fiscal policies, internal supply shortages, openness to foreign inputs, and reduced export taxes positions the sector strategically. Effectively addressing associated risks will be key to ensuring its long-term sustainability and competitiveness.

BRAZIL
Bioinputs Law – A Paradigm Shift Toward Sustainable Agriculture

Brazil’s agricultural sector is undergoing a significant transformation with the enactment of the Bioinputs Law (Law 15.070/2024), sanctioned on December 24, 2024. This landmark legislation establishes specific guidelines for the production, marketing, and use of bioinputs, addressing the limitations of previous regulations that were primarily focused on chemical products. The law marks a significant step toward promoting sustainable agricultural practices and reducing reliance on synthetic inputs.

Bioinputs, derived from microorganisms, plant extracts, and other natural sources, offer a sustainable alternative to traditional chemical inputs in agricultural management. These biologically-based inputs are designed to enhance plant nutrition, protect against pests and diseases, and improve overall soil health. Previously, these inputs were regulated under the Agrochemicals Law, which did not adequately address their unique characteristics and benefits, leading to legal uncertainties and hindering their development and adoption.

Key Changes

The Bioinputs Law creates a distinct regulatory framework specifically tailored for bioinputs. This framework encompasses various categories, including biofertilizers, biodefensives, inoculants, and biostimulants. The key changes introduced by the law include:

Specific Regulations: Bioinputs are now recognized as a separate and distinct category, clearly differentiated from chemical products. This recognition allows for regulations that are more appropriate for the specific characteristics and applications of bioinputs.

Simplified Registration: Recognizing the lower risk profile of many bioinputs, the new law provides for simplified registration processes. Low-risk bioinputs may be exempt from registration altogether or eligible for streamlined registration procedures, reducing the administrative burden on producers and manufacturers.

Multiple Functionalities: The law acknowledges that many bioinputs have multiple functionalities, such as promoting plant growth while also providing pest control. To reflect this, a single registration is now possible for products with multiple uses, simplifying the regulatory process.

Innovation Incentives: The law actively encourages research and development in biological technologies, particularly for small producers and agricultural cooperatives. By providing support for innovation, the law aims to foster the development of new and improved bioinput products.

Previous Regulatory Landscape: Before the enactment of the Bioinputs Law, the regulatory landscape for bioinputs was fragmented and often ill-suited to their unique characteristics. Biofertilizers, inoculants, biodefensives, and biostimulants were regulated under laws designed for chemical products, leading to inconsistencies and challenges. For example, biodefensives faced the same stringent toxicity requirements as chemical pesticides, even though they generally pose a much lower risk to human health and the environment. This created a significant barrier to their adoption.

 

Key Provisions of the New Law

On-Farm Production: The law authorizes and regulates the production of bioinputs for own use on farms, with simplified requirements. This provision recognizes the importance of on-farm production for small-scale farmers and promotes the use of locally sourced inputs.

Registration and Exemptions: Commercial bioinputs must be registered with the appropriate regulatory authorities, but low-risk products are exempt from registration, reducing the regulatory burden on producers.

Production Incentives: The law provides for public policies and financial mechanisms to support the development, production, and use of bioinputs. These incentives may include tax breaks, subsidies, and access to credit for producers who adopt bioinput technologies.

Clear Definitions: The law provides clear and precise definitions for bioinputs and related terms, enhancing regulatory clarity and reducing the potential for misinterpretation.

Establishment and Product Registration Fee (TREPDA): A fee is instituted to fund inspection activities and ensure compliance with the law. However, low-risk products are exempt from this fee, further incentivizing their adoption.

Sanctions: Penalties for non-compliance with the law are aligned with the existing Self-Control Law, and include warnings, suspensions of registrations, and fines.

Impact and Outlook

The Bioinputs Law is expected to have a wide-ranging positive impact on Brazil’s agricultural sector. By streamlining market access, promoting sustainability, strengthening legal certainty, and boosting the competitiveness of Brazilian agribusiness, the law is poised to drive significant growth in the bioinput sector. Transitional rules are in place to allow the sector to adapt gradually, with new regulations expected in 2025. This legislation positions Brazil as a potential global leader in the development and application of bioinputs, fostering a more innovative, resilient, and sustainable agricultural sector. The law represents a significant step toward a more environmentally friendly and economically viable future for Brazilian agriculture.  •