A recent arbitration panel ruling under the US-Mexico-Canada Agreement (USMCA) has favored the US in a dispute against Mexico’s restrictions on genetically modified (GM) corn imports. The panel unanimously ruled in favor of the US on all seven legal claims, highlighting the violation of Mexico’s obligations under the trade agreement when President Andrés Manuel López Obrador issued a decree in 2023 prohibiting GM corn imports. This ruling signifies the significance of science-based trade policies, as stated by US Trade Representative Katherine Tai.

Tom Vilsack, US Agriculture Secretary, emphasized the importance of evidence supporting the safety of agricultural biotechnology and the need for a science- and risk-based regulatory review system. The ruling is crucial for US corn farmers who heavily rely on stable trade relationships to protect their access to key markets.

Verity Ulibarri, the chairperson of the US Grains Council (USGC), highlighted the importance of enforceable provisions in trade agreements like the USMCA, emphasizing the significance of the panel’s findings. The value of US corn exports to Mexico was highlighted, with $4.8 billion worth of corn exported from January through October 2024, solidifying Mexico as the largest market for US corn exports according to USTR data.

The background and implications of the dispute were explored, with Mexico initially announcing 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, 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, collaborating with various agencies to build the case.

While Mexico has accepted the panel’s decision regarding imports, it noted that the Mexican Congress is moving towards banning the cultivation of GM corn within the country due to concerns about cross-pollination with native varieties cultivated by subsistence farmers. The dispute has garnered attention from international trade lawyers and health advocates, with Mexico raising concerns about the safety of biotech food products.

In conclusion, the recent ruling in favor of the US in the USMCA arbitration panel underscores the importance of science-based trade policies and enforceable provisions in trade agreements. The protection of US corn farmers’ access to key markets and the significance of evidence supporting the safety of agricultural biotechnology were highlighted. The implications of the dispute between the US and Mexico on GM corn imports shed light on the complexities of international trade agreements and the intersection of science, trade, and regulatory policies.