U.S. won a trade dispute against Mexico on imports of genetically modified corn

The U.S. has won a significant trade dispute with Mexico, following Mexico’s attempt to halt imports of genetically modified corn designated for human consumption. This decision was announced on Friday by a panel of experts under the U.S.-Mexico-Canada Agreement (USMCA), marking a substantial relief for U.S. corn growers who feared losing their largest export market. Mexico’s Economy Department expressed its disagreement with the panel’s decision, citing public health and Indigenous rights concerns. However, it confirmed its commitment to respect the ruling. “The Mexican government will respect the ruling, even though it maintains that its measures were aimed at protecting public health and the rights of Indigenous communities,” stated a spokesperson from the department.

For years, Mexico has been a major buyer of U.S. genetically modified corn, with purchases averaging around $3 billion annually, primarily for livestock feed. The dispute arose when Mexico announced its intention in 2020 to implement a ban on genetically modified corn for human consumption and suggested a similar ban might follow for animal feed. The U.S. Trade Representative (USTR) challenged Mexico’s actions, claiming they were unscientific and breached the market access agreements established under the USMCA. The panel’s agreement with all U.S. legal claims on Friday reinforced this position, stating that Mexico’s measures were not scientifically supported and interfered with agreed-upon trade terms.

Despite the ruling, Mexico continues to raise health concerns associated with biotech corn, even when used as animal feed, though it has yet to provide concrete evidence to support these claims. In early 2023, Mexico’s Economy Department revised its regulations, removing specific deadlines but maintaining the goal of gradually replacing genetically modified feed and milled corn based on future studies.