The highest court in Guatemala has suspended the controversial 'Monsanto Law,' a provision of a US-Central American trade agreement, that would insulate transnational seed corporations considered to have “discovered" new plant varieties.

The Constitutional Court suspended on Friday the law - passed in June and due to go into effect on Sept. 26 - after a writ of amparo was filed by the Guatemalan Union, Indigenous and Peasant Movement, which argued the law would harm the nation, LaVoz reported.

The Court’s decision came after several Guatemalan parliamentarians from both the governing Patriotic Party and the opposition party Renewed Democratic Freedom said they would consider repealing the law after outcry from a diverse cross-section of Guatemalans.

The decision also offers interested parties 15 days to present their arguments pertaining to the law in front of the Constitutional Court. Members of both political parties said they would present motions to resist the law.

The 'Law for the Protection of New Plant Varieties,' dubbed the 'Monsanto Law' by critics for its formidable seed-privatization provisions, is an obligation for all nations that signed the 2005 CAFTA-DR free trade agreement between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States. The agreement requires signatories to adhere to the International Convention for the Protection of New Plant Varieties.

The law offers producers of transgenic seeds, often corporate behemoths like Monsanto, strict property rights in the event of possession or exchange of original or harvested seeds of protected varieties without the breeder's authorization. A breeder's right extends to "varieties essentially derived from the protected variety,” thus, a hybrid of a protected and unprotected seed belongs to the protected seed’s producer.

The Rural Studies Collective (Cer-Ixim) warned that the law would monopolize agriculture processes, severely threaten food sovereignty - especially those of indigenous peoples - and would sacrifice national biodiversity "under the control of domestic and foreign companies."

The National Alliance for Biodiversity Protection said in July that the law is unconstitutional "because it violates the rights of peoples. It will benefit transnational seed companies such as Monsanto, Duwest, Dupont, Syngenta, etc."

"According to this law, the rights of plant breeders are superior to the rights of peoples to freely use seeds," the Alliance said in a statement.

"It’s a direct attack on the traditional knowledge, biodiversity, life, culture, rural economy and worldview of Peoples, and food sovereignty," the Alliance added.

Anyone who violates the law, wittingly or not, could face a prison term of one to four years, and fines of US$130 to $1,300.

It is unclear what options the Guatemalan government has given the obligations under CAFTA-DR. The US would likely put pressure on the nation to pass the law, part of a global effort using trade agreements to push further corporate control over trade sectors like agriculture in the name of modernization. Upon further refusal, the US could drop Guatemala from the trade agreement.