The United States has secured a significant victory in its dispute under the United States-Mexico-Canada Agreement (USMCA) over Mexico’s biotechnology measures concerning genetically engineered (GE) corn. The dispute settlement panel ruled in favor of the U.S. on all seven legal claims, stating that Mexico’s restrictions were not grounded in science and violated market access commitments under the USMCA.
Panel Supports Science-Based Trade
Agriculture Secretary Tom Vilsack welcomed the decision, emphasizing its alignment with decades of evidence demonstrating the safety of agricultural biotechnology. “The panel’s impartial assessment confirms that Mexico’s approach was not based on scientific principles or international standards,” said Vilsack. “This decision ensures U.S. producers will have full and fair access to the Mexican market.”
Ambassador Katherine Tai, United States Trade Representative, hailed the decision as a victory for fair and science-based trade. “This ruling underscores the importance of science-based policies that enable American farmers to compete and innovate,” Tai said. “We look forward to working with Mexico to ensure compliance and maintain strong trade relations.”
Ambassador Doug McKalip highlighted the broader implications of the ruling, stating, “This is a critical step in ensuring U.S. farmers can continue to compete fairly in the global marketplace. Agricultural trade policies must be grounded in science and free from unnecessary trade disruptions.”
Dispute Details
The dispute arose from Mexico’s February 2023 decree, which:
- Immediately banned the use of GE corn in dough and tortillas.
- Directed government agencies to gradually phase out GE corn for other food uses and animal feed.
The United States initiated the panel process on August 17, 2023, under Chapter 31 of the USMCA, citing six claims under the Sanitary and Phytosanitary Measures Chapter and one under the National Treatment and Market Access for Goods Chapter.
Economic Impact
From January to October 2024, the U.S. exported $4.8 billion worth of corn to Mexico, its largest export market for the crop. The panel’s decision ensures continued market access and upholds trade principles vital for both countries.
Next Steps
Under USMCA rules, Mexico has 45 days from the panel’s December 20, 2024, final report to comply with the findings. The U.S. Government, working with stakeholders and agencies such as the USDA, FDA, and EPA, will monitor Mexico’s adherence to its commitments.
This decision is a pivotal moment in reinforcing science-based agricultural trade, supporting U.S. farmers, and ensuring that fair trade practices prevail across North America.
