"Bayer, the owner of glyphosate (after buying Monsanto in 2018 in arguably the worst merger of modern corporate history), is in dire financial straits. As the FT reported earlier this year, “its breakup looks inevitable.” Its shares continue to slide, having already lost roughly 80% of their value since 2018, and are now worth just 20 billion euros, significantly below its net debt (39 billion euros). In its latest earnings statement, the much-diminished German chemicals giant reported a net loss of 4.18 billion euros in the third quarter. Worldwide sales of glyphosate are sinking and one of the worst performing regions for its agricultural market is Latin America. Just what the German economy needed.

-

The US’ corn dispute with Mexico is one of a host of trade disputes that have been brought against the Mexican government by its USMCA partners since the signing of the trade deal in 2018. In 2023, Mexico had received the most investment arbitration claims under investment protection treaties worldwide, according to the Transnational Institute.

It is a trend that shows no sign of abating. In coming months, the Sheinbaum government is planning to pass over a dozen constitutional reforms, on (among other things) mining, energy, housing, agriculture and labour rights, etc, that are also likely to ruffle feathers in the C-suites of US and Canadian companies.

The USMCA trade agreement, now in its fifth year of existence and up for renegotiation next year, is looking increasingly frail. Trump is threatening to impose ratcheting tariffs of up to 100% on Mexican goods if the Sheinbaum government doesn’t close its border with the US. Of course, this could be pure electoral bluster coming from Trump. But if he does follow through on these threats, it would seriously undermine the very trade deal he himself helped broker as well as invite tit-for-tat tariffs from Mexico’s government.

Meanwhile, in Canada the governor of Ontario, Doug Ford, has called for the removal of Mexico altogether from the trade agreement due to its growing trade and diplomatic ties with China (a topic we covered just a couple of months ago).

“Since signing on to the United States-Mexico-Canada Agreement, Mexico has allowed itself to become a backdoor for Chinese cars, auto parts and other products into Canadian and American markets, putting Canadian and American workers’ livelihoods at risk while undermining our communities.”

The Canadian government is also up in arms about the Sheinbaum government’s plans to radically rewrite Mexico’s mining laws. For over three decades, Mexico has been a veritable paradise for global mining conglomerates, many of them based in Canada, serving up some of the laxest regulations in Latin America. That is now changing. The proposed reforms include a near-total ban on open-pit mining and much stricter restrictions on the use of water in areas with low availability.

Ford’s proposal to eject Mexico from USMCA has an ironic twist given that it was Mexico’s AMLO government that allegedly intervened to helped seal Canada’s membership of the USMCA. By late 2018, relations between Trump and Trudeau had soured to the point where Trump was threatening to leave Ottawa out of the trade deal altogether after already signing a preliminary agreement with Mexico. But AMLO apparently said to Trump: “No, we are going to have Canada participate as well.” And President Trump acceded.

Now, Canada’s Deputy Prime Minister, Economy Minister and WEF Trustee Chrystia Freeland is paying Mexico’s government back by echoing US concerns that Mexico’s trade policy is not in line with its US allies on China. Speaking to reporters in Ottawa this week, Freeland claimed to have heard these concerns from people expected to serve alongside US President-elect Donald Trump, as well as current Biden administration officials and other US business leaders."

https://www.nakedcapitalism.com/2024/11/as-rumours-fly-that-mexico-will-lose-isds-case-on-gmo-corn-ban-sheinbaum-pledges-to-enshrine-corn-protections-in-constitution.html