Trade Panel Declares Mexico’s GM Corn Ban in Violation of USMCA Rules

Trade Panel Declares Mexico’s GM Corn Ban in Violation of USMCA Rules

Trade Dispute Ruling Against Mexico’s GM Corn Restrictions

A trade-dispute panel ruled that Mexico’s restrictions on U.S. genetically modified (GM) corn exports violate the U.S.-Mexico-Canada Agreement (USMCA). The ruling marks a significant development in the ongoing trade conflict between the two nations.

Key Findings of the Ruling

1. Violation of USMCA Provisions
   • The panel found Mexico’s policies breached USMCA chapters on sanitary and phytosanitary (SPS) measures, market access, and national treatment.
   • The panel ruled in favor of all seven U.S. legal claims and recommended that Mexico revise its policies within 45 days.
2. Scientific Basis Disputed
   • The U.S. argued that Mexico’s claims about GM corn’s health risks were not based on scientific evidence.
   • The ruling supported the U.S. position, emphasizing the need for trade policies to adhere to science-based standards.

Mexican Government’s Response

1. Objections to the Ruling
   • Mexico’s economy and agriculture ministries stated their disagreement with the decision, asserting that their measures align with public health protection and Indigenous rights.
   • Despite these objections, Mexican officials committed to respecting the panel’s decision.
2. Focus on Native Corn and Public Health
   • Mexico cited concerns over GM corn potentially contaminating native varieties and the need to protect public health.
   • The government previously banned GM corn for use in tortillas and dough, allowing limited use in livestock feed and processed foods.

Impacts on Trade

1. Significance of U.S.-Mexico Corn Trade
   • Mexico is the largest buyer of U.S.-grown yellow corn, importing $4.8 billion worth in 2024 (through October).
   • The country is projected to import a record 22.3 million metric tons of U.S. corn during the 2023/24 agricultural season.
2. Potential Consequences for Noncompliance
   • Failure by Mexico to comply with the ruling could lead to U.S. punitive duties on Mexican exports, adding economic pressure.

Broader Context

1. Cultural Importance of Native Corn
   • Mexico is the birthplace of modern corn and boasts over 60 native varieties. Concerns over GM corn impacting these strains have driven resistance to its use.
2. International Trade Dynamics
   • The ruling comes amidst broader tensions within USMCA, including previous disputes over automotive rules of origin.
   • Ongoing trade frictions may intensify with additional challenges, such as potential U.S. tariff policies.

Next Steps

• Mexico must adapt its corn-trade policies within the USMCA framework to avoid retaliatory measures.
• The ruling highlights the delicate balance between respecting cultural and environmental priorities and adhering to international trade agreements.

This case will likely serve as a precedent for future disputes involving biotechnology and trade regulations in the region.