Dive Brief:
- The U.S. on Thursday requested a settlement panel to address Mexico's limitations on genetically modified corn imports, escalating a trade dispute between the two countries.
- The request for arbitration under the United States-Mexico-Canada Agreement comes after Mexico and the U.S. failed to reach a deal despite months of formal negotiations.
- The U.S. argues that Mexico's ban on the use of biotech corn in tortillas and dough is not backed by science and limits the market for exporters. If the panel were to side with the U.S., it would open the door for the country to impose tariffs on goods from Mexico.
Dive Insight:
A plan to phase out the use of GMO corn for human consumption and animal feed has U.S. growers concerned about the prospect of significant market share losses. Biotech corn makes up over 90% of supply, and Mexico is a top export destination for U.S corn.
“Mexico’s decree, which runs counter to scientific findings and is in direct violation of USMCA, is negatively impacting American corn growers,” Tom Haag, president of the National Corn Growers Association, said in a statement. “We are deeply appreciative of USTR for standing up for America’s corn growers.”
Mexico first unveiled the ban in 2020, but has since softened some of the policies to allow for a more gradual phase out. The country says the curbs are necessary to protect human health, and it is also banning the controversial herbicide glyphosate.
U.S. officials, however, argue that Mexico's limitations aren't validated by science and hurt growers' ability to use technology to address climate change, food insecurity and other challenges.
"Innovations in agricultural biotechnology play a key role in advancing solutions to our shared global challenges,” Tom Vilsack, secretary of the U.S. Department of Agriculture, said in a statement, adding that the request for a dispute panel is meant to ensure "that U.S. producers and exporters have full and fair access to the Mexican market."
Mexico's Economy Ministry wrote on X, formerly known as Twitter, that it is prepared to defend the ban and that the policies remain consistent with North American trade agreements.
