The US has successfully challenged Mexico’s restrictions on genetically modified (GMO) corn imports, securing a significant victory in a trade dispute that threatened crucial agricultural trade flows. An arbitration panel under the USMCA trade agreement ruled in favor of the US, concluding that Mexico’s import ban lacked scientific basis and violated the trade pact. This decision solidifies a preliminary ruling issued last month.
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US Trade Representative Katherine Tai welcomed the decision, emphasizing that it validates long-standing US concerns regarding Mexico’s biotechnology policies and their negative impact on American agricultural exports. Mexico, a major importer of US corn primarily for animal feed, has experienced record-high imports due to recent droughts impacting domestic harvests.
Mexico’s policy initially prohibited GMO corn imports for human consumption, raising concerns among US growers that the ban could extend to corn intended for livestock feed. This ruling definitively clarifies the issue, reaffirming the importance of science-based trade regulations.
Mexico Accepts Ruling, but Maintains Stance on Domestic GMO Ban
While disagreeing with the panel’s findings, Mexico’s Economy Ministry confirmed its acceptance of the ruling. The Ministry defended its measures as necessary to safeguard public health and indigenous rights. However, this acceptance signals a commitment to upholding the terms of the USMCA agreement.
In a separate statement, the Mexican government reiterated its commitment to banning the cultivation of genetically engineered corn within its borders. This domestic ban, aimed at preserving the genetic diversity of native Mexican corn varieties, remains unaffected by the USMCA ruling, which specifically addresses import restrictions. The government expressed support for pending legislation in Congress that would formalize this domestic ban.
Implications for US-Mexico Agricultural Trade
The arbitration panel’s decision underscores the significance of the USMCA in resolving trade disputes and ensuring predictable market access for agricultural products. The ruling reinforces the principle of science-based regulations in international trade, preventing arbitrary barriers that could disrupt critical supply chains. This outcome is expected to provide greater certainty for US corn growers and contribute to the continued strength of agricultural trade between the two nations. For Mexico, the ruling necessitates adjustments to its import policies for GMO corn, while allowing the pursuit of domestic policies related to GMO cultivation.
