US Wins Ruling Against Mexico's Ban on Genetically Modified Corn

MEXICO CITY (AP) — The United States achieved a significant victory on Friday in a trade dispute with Mexico, which had aimed to prohibit the importation of genetically modified (GM) corn intended for human consumption.

This ruling is seen as a crucial win for U.S. corn growers who were concerned about the potential loss of their largest export market. The U.S. growers expressed their satisfaction with the decision, labeling it “a major win.”

Mexico's Economy Department announced its disagreement with the ruling made by a panel of experts under the U.S.-Mexico-Canada Agreement (USMCA). However, the department stated that it would comply with the ruling. They conveyed, “The Mexican government does not agree with the panel’s finding, considering the measures in question align with the principles of protecting public health and the rights of Indigenous communities.” Nevertheless, they committed to respecting the panel's decision.

Mexico has been a major importer of genetically modified corn from the United States for several years, purchasing around $3 billion worth each year. This corn is primarily used for livestock feed in Mexico. However, plans for banning human consumption of GM corn were announced in 2020, with indications that the ban could eventually extend to GM corn used for animal feed.

In 2023, the U.S. government formally requested a dispute settlement panel concerning Mexico’s restrictions on GM corn. Mexico had previously asserted that its measures did not affect trade and did not breach the USMCA.

The U.S. Trade Representatives Office (USTR) contended that Mexico’s ban on GM corn for human consumption, along with future plans to also bar it from animal feed, were serious concerns. On Friday, USTR announced that the panel ruled in favor of the U.S. on all legal points, stating that Mexico’s policies are not scientifically grounded and hinder market access that Mexico had agreed to provide under the USMCA.

Members of the U.S. National Corn Growers Association expressed their appreciation for the decision. The president of the association, Kenneth Hartman Jr., stated, “This outcome is a direct result of the advocacy efforts of corn grower leaders from across the country.”

Mexico stands as the leading importer of U.S. yellow corn, most of which is genetically modified. The vast majority of this corn is fed to cattle, pigs, and chickens in Mexico, as the country is unable to grow sufficient feed corn itself. In contrast, the corn consumed by humans in Mexico is predominantly domestically produced white corn, although processed products like cornmeal chips may potentially include GM corn.

Mexican authorities have argued that biotech corn could have health implications even when utilized as animal fodder, but they have not yet provided substantial proof. Although Mexico had seemed keen to prevent a major confrontation with the U.S. concerning this issue, it still appeared reluctant to completely abandon conversations about a ban.

In early 2023, new regulations from Mexico’s Economy Department clarified the timelines regarding the substitution of GM feed corn imports. The latest regulations suggest that Mexican officials will gradually replace GM feed and milled corn, yet no specific deadlines are set. Mexican specialists, in collaboration with health authorities from other countries, will investigate potential health concerns.

Initially, prior guidelines had created worries among U.S. producers that a GM feed corn ban could be put into effect as soon as 2024 or 2025.

While the timeline was removed from the recent regulations, the mention of eventually substituting GM corn remains, which raises concerns that this could lead to increased meat prices in Mexico, where inflation is already a pressing issue.

trade, corn, dispute