The US corn industry received a significant victory on December 20th when a trade-dispute panel ruled in favor of the United States in a case against Mexico. The panel found that Mexico’s restrictions on genetically modified (GM) corn from the US violated the US-Mexico-Canada (USMCA) agreement. The ruling was a result of Mexico’s decree in 2023 banning GM corn imports, citing concerns about human health. The US Trade Representative challenged this decree, leading to arbitration and ultimately a ruling in favor of the US.

The dispute began in 2020 when Mexico announced plans to ban GM corn by the end of 2024. This decision was met with opposition from US corn growers, who rely heavily on exports to Mexico. With nearly 50% of total US corn export sales going to Mexico each year, the stakes were high for the industry. The ruling in favor of the US was seen as a major victory for corn growers and rural communities.

Kenneth Hartman Jr., president of the National Corn Growers Association, expressed gratitude for the outcome, attributing it to the advocacy efforts of corn grower leaders and the responsiveness of US officials. Ryan LeGrand, president of the US Grains Council, also praised the decision, highlighting the importance of Mexico as a key partner for US corn growers and exporters.

While Mexico expressed disappointment with the ruling, the country’s economy and agriculture ministries stated that they would respect it. Mexico now has 45 days to bring its corn-trade policies into compliance with the USMCA agreement. Failure to do so could result in punitive duties on some exports to the United States.

Mexico has been a significant importer of genetically modified corn from the US, with annual purchases totaling around $3 billion. The country typically imports approximately 17 million tonnes of US corn each year. The resolution of this dispute is expected to benefit both US corn growers and Mexican consumers, ensuring continued trade relations between the two countries.

Overall, the ruling in favor of the US in the dispute with Mexico over GM corn imports marks a significant victory for the US corn industry. It demonstrates the importance of adherence to trade agreements and the impact of international trade policies on agricultural sectors. The resolution of this dispute is a positive development for both US corn growers and Mexican consumers, ensuring continued cooperation and partnership between the two countries.