Good Day BIO: Mexico’s GM corn ban a lose-lose scenario, study says

A new report explains why Mexico’s ban on GM corn is a lose-lose for Mexico and the U.S., and some want to use the Bayh-Dole Act to achieve “backdoor” drug price controls, which would amount to a “frontal assault” on R&D. (701 words, 3 minutes, 30 seconds)

Mexico’s GM corn ban a lose-lose scenario, study confirms

A new economic impact report shows Mexico’s looming ban on GM corn and policies and processes related to agricultural biotechnology will harm economies on both sides of the U.S.-Mexican border and worsen food security.

“The proposed ban will force North American grain handling systems into two streams (GM and non-GM corn), an approach that is costlier, disincentivizes innovation and subjects supply chains to greater volatility,” finds the report, prepared by World Perspectives Inc. for CropLife International. 

Under the ban, Mexico will pay more for corn imports—to the tune of an additional $4.4 billion over the next 10 years—while GDP will decline in Mexico by $4.3 billion and the U.S. by $7.95 billion, as we explain on Bio.News.

The background: On December 31, 2020, Mexico’s President Andrés Manuel Lopez Obrador announced the country would end the import of genetically modified corn for human consumption by 2024—read more background. 

The context (making a bad situation worse): Global corn stock-to-use ratios have tightened in recent years on growing demand from China, adverse weather in major corn growing countries, disruption to Ukraine’s supply due to its war with Russia, and now soaring costs for fertilizer and other production inputs (hello, energy prices!), according to S&P Global Commodity Insights. 

Read more about the long-term impact, including on feed, innovation, and sustainability, in Bio.News. 

What’s next: BIO has urged the Biden administration to assert pressure on Mexico to reverse its decision to phase out GM corn imports and return to timely and science-based risk assessments of biotech traits for agricultural products, consistent with its international obligations. U.S. Trade Rep. Ambassador Katherine Tai indicated the U.S. could pursue dispute resolution under the U.S.-Mexico-Canada Agreement if Mexico fails to resolve this issue.

Join CropLife International for a webinar Wednesday, June 29, 3 p.m. Eastern/2 p.m. Central—click here to register.

‘Backdoor’ drug price controls are ‘a frontal assault’ on R&D

The Bayh-Dole Act was created to encourage innovative research—but an effort to twist the law’s march-in provision to achieve “backdoor” price controls will limit patient access to drugs, explains Danny Seiden, CEO of the Arizona Chamber of Commerce, on Vital Transformation’s podcast.

But first—what’s Bayh-Dole? The 1980 law is meant to empower universities, small businesses, and non-profits to take ownership of and license inventions made during federally funded research, and encourage private sector investment to turn basic science into tested and approved products, as we’ve explained. 

Now, some want to use it to control drug prices—most recently, nearly 100 members of the House and Senate who sent a letter to Health and Human Services (HHS) Secretary Xavier Becerra urging such, POLITICO reported.

“It’s a backdoor way of getting what they failed to do through Build Back Better,”says Seiden in the podcast episode. It’s “a frontal assault on innovation and R&D, and all the great things we get out of pharmaceuticals.”

Just look at Europe—where disincentivizing investment and development of drugs through price controls has led to fewer drugs reaching the market, Seiden says. “You have people in Europe coming here to get treatments.” 

What they're saying: “AZBio and the Arizona Chamber work together to support health innovation and the importance of patients having the ability to access health innovations when they need it. Danny Seiden reminds us how important it is to look at the facts. That is what lays the foundation for sound policy. Otherwise, the intended benefit can be overshadowed by the unintended consequences," Joan Koerber-Walker, President and CEO of AZBio, told us.

Listen to the whole thing. 

More Reading:

• RealClearPolitics Opinion: Bye-Bye Bayh
• Bio.News: Attack on Bayh-Dole threatens small business

More Health Care News:

The New York Times: FDA may move toward updating COVID vaccines today
“A panel of independent experts advising the Food and Drug Administration is set to recommend today whether to update existing COVID-19 vaccines to target a newer version of the coronavirus in a booster shot that Americans could get in the fall.”

President Biden’s Tuesday: Meeting the leaders of France, Germany, and the U.K. on the final day of the G7 Summit in Germany, where he’s already discussed sanctions on Russia and a global infrastructure plan to rival China’s. Then, flying to Spain to discuss Ukraine with President Pedro Sánchez of Spain and kick off a three-day NATO summit. 

What’s Happening on Capitol Hill: The House holds a surprise hearing on the Jan. 6 investigation, reportedly to release new evidence and receive witness testimony; few details are being given. The Senate is in recess.