A recent ruling by a USMCA arbitration panel has favored the US in a dispute with Mexico over restrictions on genetically modified (GM) corn imports. The panel unanimously ruled in favor of the US on all seven legal claims, stating that Mexico violated its obligations under the US-Mexico-Canada Agreement (USMCA) when President López Obrador issued a decree in 2023 prohibiting GM corn imports.

The ruling highlights the importance of science-based trade policies, as emphasized by US Trade Representative Katherine Tai. US Agriculture Secretary Tom Vilsack also emphasized the significance of the ruling, stating that Mexico’s measures went against decades of evidence demonstrating the safety of agricultural biotechnology. He further highlighted the importance of stable trade relationships for US corn farmers and the crucial role of the ruling in protecting their access to key markets.

Verity Ulibarri, chairperson of the US Grains Council (USGC), emphasized the importance of having enforceable provisions in trade agreements like the USMCA to ensure fair trade practices. The ruling has significant implications for the value of US corn exports to Mexico, with $4.8 billion worth of corn exported from January through October 2024, reinforcing Mexico’s position as the largest market for US corn exports.

The background of the dispute dates back to Mexico’s initial plans in 2020 to phase out GM corn by the end of 2024. However, President López Obrador’s decree in 2023 expanded the ban to include GM corn used in tortillas and masa, as well as directing the gradual elimination of GM corn for feed and other food uses. In response, the US initiated a formal dispute settlement process under USMCA provisions, with collaboration from USTR officials, the USDA, FDA, and EPA.

While Mexico has accepted the panel’s decision regarding imports, the country is progressing towards banning the cultivation of GM corn within its borders. Mexico’s concerns revolve around the potential for GM corn to cross-pollinate with native varieties cultivated by subsistence farmers nationwide, sparking fears about the impact on local agriculture.

The dispute has garnered attention from international trade lawyers and health advocates, with Mexico raising concerns about the safety of biotech food products. The ruling serves as a reminder of the complexities surrounding trade agreements and the need for science-based approaches to address disputes in the agricultural sector.

Overall, the ruling in favor of the US in the GM corn dispute with Mexico underscores the importance of upholding trade agreements and ensuring fair trade practices based on scientific evidence. The implications of the ruling extend beyond the immediate trade relationship between the two countries, impacting the broader discussions around biotechnology and food safety in the global marketplace.