U.S. moves forward on USMCA dispute with Mexico over corn

By Julie TomascikEditor

The U.S. officially requested dispute settlement consultations with Mexico under the U.S.-Mexico-Canada Agreement (USMCA) over Mexico's efforts to ban genetically modified corn and its recent history of rejecting biotech seed traits.

The dispute consultations are the first step in the process under USMCA. If the consultations fail to resolve the disagreements with 75 days, the U.S. can request a dispute settlement panel to decide the case.

"We will continue to work with the Mexican government through these consultations to resolve our concerns and help ensure consumers can continue to access safe and affordable food and agricultural products," U.S. Trade Representative (USTR) Katherine Tai said in a statement.

The U.S. requested formal trade consultations in March, but they failed to resolve the matter.

Mexico's most recent version of the decree on genetically modified corn prohibits tortilla makers from using flour made with genetically modified white corn that Mexican food companies import from the U.S.

The foreign country first issued a decree to limit the import of genetically modified corn in 2020.

Mexico's restrictions are not based in science and are inconsistent with the sanitary and phytosanitary chapters outlined under USMCA, according to the USTR.

"The United States has repeatedly conveyed its concerns that Mexico's biotechnology policies are not based on science and threaten to disrupt U.S. exports to Mexico to the detriment of agricultural producers, which in turn can exacerbate food security challenges," Tai said. "Mexico's biotechnology policies also stifle agricultural innovation that helps American farmers respond to pressing climate challenges, increase farm productivity, and improve farmers’ livelihoods."

U.S. lawmakers and farm groups are urging Tai to resolve the issue with Mexico.

"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," American Farm Bureau Federation President Zippy Duvall said in a statement.

U.S. Secretary of Agriculture Tom Vilsack also recognized Mexico's restrictions as a threat to scientific progress.

"We fundamentally disagree with the position Mexico has taken on the issue of biotechnology, which has been proven to be safe for decades," Vilsack said. "Through this action, we are exercising our rights under USMCA while supporting innovation, nutrition security, sustainability, and the mutual success of our farmers and producers."

Limiting U.S. corn exports would have negative consequences for American corn farmers and Mexican consumers. It could also set a precedent with other countries, which would cause major disruptions in global trade.

The consultations also will address Mexico's restrictions on new biotech seeds for soybeans, cotton and canola.

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