A trade dispute panel recently ruled in favor of the United States in a case against Mexico over its ban on genetically modified (GM) corn. The panel determined that the prohibition on biotech corn was not scientifically justified and violated the terms of the U.S.-Mexico-Canada Agreement (USMCA). This decision is seen as a significant victory for U.S. farmers, who had expressed concerns that the ban would hinder access to an essential export market.
Mexico’s ban on GM corn was introduced in 2023 through a presidential decree, which aimed to phase out biotech corn for human consumption. The decree also included provisions for the gradual replacement of GM corn in animal feed and industrial uses. The United States responded by filing a challenge under the dispute resolution mechanism of the USMCA, arguing that the ban undermined market access that Mexico had agreed to provide as part of the trade agreement.
Mexico’s government has indicated that it disagrees with the ruling but will comply with the decision. The country has until February 3, 2025, to adjust its policies in accordance with the panel’s findings.
The dispute centers on Mexico’s decision to ban genetically modified corn, which it justified by citing concerns about human health and the potential contamination of native corn varieties. While the ban specifically targeted biotech corn, it also included a prohibition on glyphosate, a widely used herbicide in U.S. agriculture. Mexico’s restrictions on GM corn were initially set to go into effect by the end of 2024, but the country paused the implementation and eased some of the restrictions in early 2023. The pause included a delay in the ban on glyphosate and instructions for the government to explore alternative pest control methods.
Although Mexico imports very little white corn used in tortillas and masa, it is the largest foreign buyer of U.S. yellow corn, primarily used for animal feed. In 2024, U.S. exports of corn to Mexico reached $4.8 billion, underscoring the importance of this trade relationship. U.S. corn farmers were deeply concerned about the potential economic impact of the ban, which could have disrupted their access to the Mexican market.
The U.S. Grains Council expressed relief at the panel’s decision, emphasizing the importance of having mechanisms in place within trade agreements like the USMCA to address disputes over trade barriers. According to Verity Ulibarri, chairwoman of the council, U.S. farmers and exporters recognized the potential devastation of the ban and welcomed the ruling as a safeguard for their interests.
However, the decision has faced criticism from civil groups in both the U.S. and Mexico. Some argue that the panel’s ruling ignored scientific evidence and prematurely assumed economic harm to U.S. farmers. Farm Action President Angela Huffman expressed disappointment with the outcome, suggesting that the ban could have created a premium market opportunity for non-GM corn producers in the U.S. Huffman also criticized the ruling for favoring agrochemical corporations, which she believes would benefit from the continued use of GM crops and technologies.
Despite the controversy surrounding the ruling, the panel’s decision has set the stage for further developments in the ongoing debate over GM crops, trade, and agricultural policy. The future of Mexico’s GM corn ban remains uncertain, but the U.S. victory in this dispute underscores the complexities of international trade and the role of scientific evidence in shaping agricultural regulations.
