A USMCA arbitration panel unanimously ruled in favor of the US on all seven legal claims against Mexico’s restrictions on genetically modified (GM) corn imports.
The experts concluded that Mexico violated its obligations under the US-Mexico-Canada Agreement (USMCA) when Mexican president, Andrés Manuel López Obrador, issued a 2023 decree prohibiting GM corn imports.
The panel’s assessment illustrates the importance of science-based trade policies, commented US Trade Representative, Katherine Tai.
“Mexico’s measures ran counter to decades’ worth of evidence demonstrating the safety of agricultural biotechnology, underpinned by science- and risk-based regulatory review systems,” said US ag secretary, Tom Vilsack.
US corn farmers rely on stable trade relationships, and the ruling is crucial for protecting their access to key markets, he continued.
According to Verity Ulibarri, chairperson of the US Grains Council (USGC), the panel’s finding shows the importance of having enforceable provisions in trade agreements like the USMCA.
Value of US corn exports to Mexico
From January through October 2024, the US exported $4.8bn worth of corn to Mexico, reinforcing its position as the largest market for US corn exports, according to USTR data.
Background and implications
Mexico initially announced plans in 2020 to phase out GM corn by the end of 2024. However, President López Obrador’s subsequent decree in 2023 expanded the ban to GM corn used in tortillas and masa, while also directing government agencies to gradually eliminate GM corn for feed and other food uses.
In response, the US initiated a formal dispute settlement process under USMCA provisions. USTR officials collaborated with the US Department of Agriculture (USDA), the US Food and Drug Administration (FDA), and the Environmental Protection Agency (EPA) to build the case.
Mexico’s ministry for the economy said it would accept the decision, but emphasized that the ruling pertains solely to imports.
The ministry also noted that the Mexican Congress is progressing toward banning the cultivation of GM corn within the country. Mexico fears that GM corn could cross-pollinate with native varieties cultivated by subsistence farmers nationwide.
The dispute has drawn considerable attention from international trade lawyers and health advocates, as Mexico has raised concerns about the safety of biotech food products.
