On Friday, U.S. Trade Representative Katherine Tai announced that the U.S. had requested dispute settlement consultations with Mexico under the United States-Mexico-Canada Agreement.
Mexico is one of the U.S.’s oldest and strongest trading partners, but President Andres Manual López Obrador published a presidential decree in 2020 banning genetically modified corn in Mexicans’ diets and ending the use of glyphosate effective January 31, 2024.
In February, Mexico updated measures to specifically ban the use of biotech corn in tortillas and dough and set out instructions for the government agencies to substitute gradually (ban) the use of GM corn in all products for human consumption and animal feed. Although Mexico somewhat softened its stance, it wasn’t enough.
Under USMCA, once a dispute settlement is filed, a group of objective experts will be empaneled to hear the case and make final determinations based on the commitments both parties signed as part of the free trade agreement.
The consultations will address these measures and the rejection of applications for authorizations covering the importation and sale of specific biotechnology products.
Mexico has promised to counter U.S. arguments, but Reuters reports that officials indicated they were committed to “constructive dialogue” and that the countries could “reach a mutually satisfactory agreement.”
Back in March, the United States requested unsuccessful formal trade consultations.
Currently, Mexico buys about 17 million tonnes of GM yellow corn for animal feed from the United States.
A ban on biotech corn could be a turning point for trade relationships worldwide. Given the high stakes, corn growers and agriculture associations have been sounding the alarm, calling on the Biden administration to initiate a dispute settlement under USMCA.
“Mexico’s actions, which are not based on sound science, have threatened the financial wellbeing of corn growers and our nation’s rural communities,” said National Corn Growers’ Association President Tom Haag.
American Farm Bureau Association’s President Zippy Duvall commented on the consultations: “The import ban hurts families in Mexico who rely on the safe and affordable food grown by America’s farmers. We encourage Ambassador Tai and Secretary Vilsack to continue pressing forward to ensure Mexico lives up to its obligations under USMCA by allowing fair trade from the United States.”
»Related: Viewpoint: Mexico’s GMO antics can undermine U.S. trade globally
