Latin America’s seed industry is at a critical juncture. Despite technological advancements that support high-yield, resilient crops, the region’s fragmented regulations threaten to stifle progress. Disparate regulatory frameworks hinder cross-border trade, research, and cutting-edge agricultural innovation. To unlock the industry’s full potential, regulatory harmonization is essential for sustainable agriculture and global competitiveness.
Innovation Meets Regulatory Hurdles
The global seed industry’s unprecedented growth, especially thanks to new breeding techniques, can only continue if various regions achieve harmonization.
“The global seed industry is soaring. This growth is largely driven by the rise of genetically modified (GM) seeds, which now represent almost 50% of the market despite covering only 18% of the global planting area,” Bharti Malhotra, Analysis Lead for Crop Science at S&P Global Commodity Insights, says. “Harmonization of regulations at the global level is crucial for new breeding techniques (NBTs) to effectively contribute to seed market growth, as these disparities can hinder technology adoption.”
Countries like Argentina, Brazil, and Chile have developed regulatory frameworks that embrace GM crops and gene-editing techniques, allowing them to reap the benefits of biotechnological advances. Their established systems promote research, innovation, and commercialization, making these countries leaders in the region. However, many other Latin American nations have not adopted such a progressive stance, causing delays in technological adoption and reducing agricultural efficiency.
The regulatory landscape for GM crops varies significantly across Latin America, creating a patchwork of policies that complicate cross-border trade and innovation. Here is the current status in key countries.
Challenges in Cross-Border Trade
The lack of regulatory uniformity across Latin America creates significant hurdles for cross-border trade. Seed companies face difficulties when exporting seeds from countries with permissive GMO regulations to those with stricter guidelines.
In countries where GMOs are accepted, farmers benefit from the latest biotechnological advances. However, these countries must carefully segregate their production lines to prevent the accidental export of GM seeds to countries where GMOs are restricted. Such barriers increase operational complexity, reduce efficiency, and raise costs for multinational companies operating across different regulatory environments.
Delays in Research and Innovation
While countries like Argentina, Brazil, and Chile have already implemented regulations that facilitate the adoption of gene-editing techniques, other countries like Mexico remain hesitant, applying more restrictive rules. This lack of alignment limits the ability of innovative seed varieties to spread across the region, reducing overall agricultural competitiveness.
Disparities in regulations not only impact trade but also slow research and innovation. There is vast potential for combining gene-editing technologies with artificial intelligence (AI) to revolutionize crop development, but their benefits will be hindered until proper harmonization occurs. “The combination of gene editing and AI allows us to analyze large datasets and predict changes that will result in desirable traits, but for these technologies to truly transform the sector, we need regulatory harmonization,” says Carlos Perez, co-founder of BioHeuris.
The fragmented regulatory environment also facilitates the spread of illegal trade and counterfeit seeds. Inconsistencies in seed certification and quality control across countries allow lower-quality seeds to enter markets with less stringent regulations, potentially leading to crop failures and reduced yields for farmers. Perez warned that this situation puts the entire agricultural value chain at risk, undermining efforts to improve productivity and sustainability in the region.
Collaboration Is Key
A united front across the seed industry is necessary to address the regulatory barriers hindering progress. Mainor España, President of the Association of Seed Growers of Guatemala, emphasizes the importance of cross-sector collaboration to overcome these challenges. “It is important that we work together—not only with farmers and agribusinesses but also with regulatory bodies and governments,” España said.
Lorena Basso, Vice-President of the International Seed Federation (ISF) and leader of Basso Semillas, echoes these sentiments. “A smart regulatory system based on science that allows an efficient production of seeds that incorporate available technologies is essential for the industry’s future,” Basso says.
Despite the challenges, progress is being made in countries like Argentina, Brazil, and Chile, which are leading the way toward regulatory harmonization. These countries are setting a benchmark for others in Latin America by adopting frameworks that facilitate the commercialization of GM crops and gene-editing techniques. The hope is that more countries will follow suit, allowing the region to capitalize on its potential as a global leader in agricultural innovation.
However, external pressures from markets such as Europe, where regulations are not always science-based, pose additional challenges. “The criteria in Europe still don’t align with scientific advancements, which creates a barrier for exporting products,” Perez observed. Latin American countries must take a strong stance in developing their own regulatory frameworks to ensure they are not constrained by external markets that lag behind in adopting new technologies.
The Urgency of Global Harmonization
Regulatory harmonization is becoming increasingly urgent as the seed industry moves into new technological frontiers. Harmonization within Latin America is key, but there must also be global efforts to align regulations to support the industry’s growth.
The future of the seed industry in Latin America depends on its ability to unite under a shared regulatory framework. Governments, institutions, and companies must collaborate to create a system that promotes innovation, streamlines trade, and ensures farmers can access the best technologies. Only through regulatory harmonization can the region’s agricultural sector reach its full potential and remain competitive globally.
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