Panel Rules Mexico’s Curbs Lack Scientific Basis
In a landmark ruling, a trade-dispute panel has declared Mexico’s restrictions on U.S. genetically modified (GM) corn exports as violations of the U.S.-Mexico-Canada Agreement (USMCA). This decision marks a significant trade victory for the Biden administration during its final weeks, according to a report by Reuters.
The U.S. Trade Representative’s (USTR) office announced that the USMCA dispute settlement panel upheld all seven of the United States’ legal claims. The panel concluded that Mexico’s restrictions lack scientific justification and breach the USMCA chapters concerning sanitary and phytosanitary measures, market access, and national treatment.
The three-member panel’s final report recommends that Mexico align its corn-trade policies with the USMCA within 45 days, as stipulated by the 2020 trade deal. Failure to comply may result in punitive tariffs on certain Mexican exports to the U.S.
In a joint statement, Mexico’s economy and agriculture ministries expressed disagreement with the ruling but committed to respecting the decision. “The government of Mexico does not agree with the panel’s decision, as it believes the measures align with public health protection principles and Indigenous peoples’ rights,” the statement read. Despite their reservations, Mexican officials emphasized the importance of dispute resolution under the USMCA framework, citing their victory over the U.S. in a separate automotive rules-of-origin case last year. The conflict originated in July 2020, shortly after the USMCA came into effect, when then-President Andres Manuel Lopez Obrador decreed a ban on GM corn by 2024. The policy primarily targeted U.S. corn exports. The ban was upheld by his successor, President Claudia Sheinbaum, although softened in February 2024 to permit GM corn for livestock feed and industrial use, excluding tortillas.
The U.S. contested Mexico’s stance, arguing that claims regarding GM corn’s harm to human health were not science-based. USTR ultimately sought arbitration, challenging Mexico’s 2023 decree banning GM corn in tortillas and dough while phasing out its use in other foods and animal feed.
U.S. Trade Representative Katherine Tai hailed the panel’s decision as a validation of longstanding concerns about Mexico’s biotechnology policies. Agriculture Secretary Tom Vilsack echoed the sentiment, stating the ruling ensures fair access to the Mexican market for U.S. farmers and supports global agricultural biotechnology efforts.
Emily Rees, president of CropLife International, welcomed the decision, describing it as “a clear signal that upholding free-trade agreements fosters innovation and ensures global food security.”
As the world’s largest buyer of U.S.-grown yellow corn—nearly all genetically modified—Mexico imported a record 22.3 million metric tons in the 2023/24 agricultural season. Despite this reliance, the country maintains a prohibition on planting GM corn domestically, citing concerns over contamination of its native landraces. Mexico is home to over 60 unique corn varieties, celebrated for their diverse colors and flavors.Deputy Economy Minister Luis Rosendo Gutierrez assured stakeholders this month that Mexico remains committed to protecting the USMCA and will comply with the panel’s ruling, even amid potential trade tensions with incoming U.S. President-elect Donald Trump. Trump has threatened a blanket 25% tariff on Mexican and Canadian imports over unrelated issues, a move that could contravene USMCA provisions and spark further disputes.
