China’s approval for imports of Syngenta Viptera corn increases the likelihood that the company will pay settlements to more than 100 farmers and exporters, including Cargill and Archer Daniels Midland, who are suing Syngenta for damages resulting from China’s rejections of shipments of U.S. corn, according to a Reuters report.
Lawyers for Syngenta told Reuters that the decision by China’s Ministry of Agriculture to approve the corn ends uncertainty about the MIR 162 strain’s status and gives the company new price references to calculate potential losses from the rejections.
China’s approval of MIR 162 gives Syngenta an incentive to settle the lawsuits because the end of the unapproved status makes it easier to calculate potential damages, Syngenta’s lawyers say. However, Syngenta has previously said the lawsuits are without merit and that it has not put aside funds to cover any potential claims.
During the past year, U.S. corn exports to China have been halted, as more than 1.2 million metric tons of U.S. crop shipments have been rejected due to the co-mingling of the unapproved corn strain.
Cargill, ADM and dozens of farmers have sued Syngenta, claiming hundreds of millions of dollars in damages.
RPT-China approval may spur financial settlements for Syngenta -lawyers