The Background:
In 2023, Mexico placed a ban on genetically modified corn for human consumption in a presidential decree. Mexico, the United States largest foreign buyer of U.S. yellow corn, also included the desire to find a replacement of biotech corn for their animal feed and industrial uses. According to the USDA, the United States exported $4.8 billion of corn to Mexico from January to October of 2024.
In response, the United States filed a challenge to dispute the ban and created a panel under the USMCA (United States Mexico Canada Agreement), stating that Mexico’s ban undermined market access the country agreed to provide as part of the trade pact.
The Decision:
Late last month, United States Trade Representative Katherine Tai announced that the USMCA panel agreed with the United States on all seven legal claims, finding that Mexico’s measures to ban genetically modified corn were not based on science and hindered market access that Mexico agreed to provide in the USMCA. The panel issued its final report to the Parties on December 20, 2024. Under USMCA rules, Mexico has 45 days (February 3, 2025) to comply with the Panel’s findings.
“The panel’s ruling reaffirms the United States’ longstanding concerns about Mexico’s biotechnology policies and their detrimental impact on U.S. agricultural exports,” said Ambassador Katherine Tai. “It underscores the importance of science-based trade policies that allow American farmers and agricultural producers to compete fairly and leverage their innovation to address climate change and enhance productivity. We look forward to continuing our collaboration with the Mexican government to ensure a level playing field and provide access to safe, affordable, and sustainable agricultural products on both sides of the border.”
According to the Institute for Agriculture & Trade Policy, there were numerous submissions defending Mexico's right to protect its food system.
"... This dispute shows how far we still need to go. Mexico has every right to try to transform its food system to better feed its people and enhance rural livelihoods and biodiversity. The U.S. was wrong to challenge that initiative, and the panel is wrong to back them up" said Karen Hansen-Kuhn, Director of Trade and International Strategies at the Institute for Agriculture and Trade Policy.
