Key Takeaways
- Panel Ruling – The USMCA panel ruled in favor of the United States, finding that Mexico’s biotechnology restrictions on genetically engineered (GE) corn are not based on science.
- Market Access – The ruling ensures continued access to the Mexican market for US corn producers, preserving $4.8 billion in corn exports from January to October 2024.
- Science-Based Trade – US officials emphasize the importance of science-driven trade policies to ensure fair competition and address climate challenges.
- Compliance Timeline – Mexico has 45 days from the panel’s final report to align its policies with the USMCA ruling.
- Industry Response – US agricultural leaders praise the ruling as a victory for fair trade, innovation, and sustainable agriculture.
In a significant trade decision, the United States has prevailed in its dispute with Mexico under the United States-Mexico-Canada Agreement (USMCA) over Mexican biotechnology measures concerning genetically engineered (GE) corn. The ruling by the USMCA dispute panel, announced by US Trade Representative Katherine Tai, found that Mexico’s restrictions were not based on scientific principles and undermined the market access guaranteed by the trade agreement.
Why Did the US Challenge Mexico’s Biotech Corn Policies?
The dispute arose from Mexico’s policies restricting the import of genetically engineered corn, citing concerns about potential health and environmental risks. The US argued that Mexico’s approach contradicted decades of scientific evidence supporting the safety of agricultural biotechnology. According to the US Trade Representative, these measures threatened to disrupt billions of dollars in agricultural trade.
“The panel’s ruling reaffirms the United States’ longstanding concerns about Mexico’s biotechnology policies and their detrimental impact on US agricultural exports,” said Ambassador Katherine Tai. “It underscores the importance of science-based trade policies that allow American farmers and agricultural producers to compete fairly and leverage their innovation to address climate change and enhance productivity.”
How Does the Ruling Benefit US Farmers?
The panel’s decision protects the interests of US corn producers, ensuring continued access to the Mexican market, the largest export destination for US corn. From January through October 2024, the United States exported $4.8 billion worth of corn to Mexico.
“This decision ensures that US producers and exporters will continue to have full and fair access to the Mexican market,” said Agriculture Secretary Tom Vilsack. “It is a victory for fair, open, and science- and rules-based trade, which serves as the foundation of the USMCA.”
Ambassador Doug McKalip highlighted the broader implications of the ruling. “This ruling is a critical step in ensuring that US farmers can continue to compete fairly in the global marketplace. We remain committed to ensuring Mexico complies with its obligations under the USMCA and eliminates its USMCA-inconsistent measures.”
What Are the Next Steps for Mexico?
The USMCA panel issued its final report to the parties on December 20, 2024. Under USMCA regulations, Mexico has 45 days from the report’s issuance to comply with the findings and adjust its policies accordingly.
How Has the Agricultural Industry Responded?
John Bode, President and CEO of the Corn Refiners Association (CRA), praised the ruling, emphasizing the importance of science-based trade rules. “The dispute panel report confirms the need for trade policies grounded in science, opening the door for more affordable, sustainable food options throughout North America,” Bode stated.
He also expressed appreciation for US government officials. “We are grateful to the Office of the US Trade Representative, especially Katherine Tai and Ambassador Doug McKalip, along with Agriculture Secretary Tom Vilsack, for their advocacy on behalf of the American corn industry.”
Bode added, “Today’s decision reinforces that trade policy should be based on science and allow North American consumers to benefit from the productivity and innovation of American farmers.”
