United States Trade Representative Katherine Tai announced that the United States has prevailed in its dispute under the United States-Mexico-Canada Agreement (USMCA) challenging certain Mexican biotechnology measures concerning genetically engineered (GE) corn. The USMCA panel agreed with the United States on all seven legal claims, finding that Mexico’s measures are not based on science and undermine the market access that Mexico agreed to provide in the USMCA.
“We commend the dispute settlement panel for its thorough and impartial assessment, which affirms that Mexico’s approach to biotechnology was not based on scientific principles or international standards. Mexico’s measures ran counter to decades’ worth of evidence demonstrating the safety of agricultural biotechnology, underpinned by science- and risk-based regulatory review systems,” said Agriculture Secretary Tom Vilsack. “This decision ensures that U.S. producers and exporters will continue to have full and fair access to the Mexican market, and is a victory for fair, open, and science- and rules-based trade, which serves as the foundation of the USMCA as it was agreed to by all parties. It is also a victory for the countries around the world growing and using products of agricultural biotechnology to feed their growing populations and adapt to a changing planet.”
“The panel’s ruling reaffirms the United States’ longstanding concerns about Mexico’s biotechnology policies and their detrimental impact on U.S. 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. We look forward to continuing our collaboration with the Mexican government to ensure a level playing field and provide access to safe, affordable, and sustainable agricultural products on both sides of the border.”
“The panel’s conclusion backs up our long-held position that agricultural trade policies must be grounded in science and must not disrupt trade in agricultural products,” said Ambassador Doug McKalip. “This ruling is a critical step in ensuring that U.S. farmers can continue to compete fairly in the global marketplace. We have worked tirelessly with the interagency and industry stakeholders for almost four years to address this issue, and we remain committed to ensuring Mexico complies with its obligations under the USMCA and eliminates its USMCA-inconsistent measures. This outcome supports our efforts to maintain a strong, science-based trade relationship that benefits American producers and consumers in both the U.S. and Mexico.”
American Farm Bureau Federation President Zippy Duvall commented that, “Farm Bureau applauds the USMCA panel decision regarding Mexico’s actions to ban biotech corn for human consumption and animal feed. The panel affirmed what AFBF and America’s farmers have emphasized all along – biotech corn is safe and decisions must be based on science, not politics. “We thank the U.S. Trade Representative for defending the safety of biotech corn and pursuing Mexico’s action as a violation of USMCA. If left in place, Mexico’s restrictions would have impacted the corn supply chain, stifled innovation, hurt trade and opened the door for other countries to pursue similar restrictive measures. “We look forward to engaging with USTR as it works with the Mexican government to remove the ban on biotech corn and provide certainty to the corn industry.”
The panel issued its final report to the Parties on December 20, 2024. Under USMCA rules, Mexico has 45 days from the date of the final report to comply with the Panel’s findings.
From January through October 2024, the United States exported $4.8 billion of corn to Mexico, the United States’ largest export market for corn.
Background
The present dispute challenged two sets of measures reflected in Mexico’s February 2023 presidential corn decree: (1) an immediate ban on the use of GE corn in dough and tortillas, and (2) an instruction to Mexican government agencies to gradually eliminate the use of GE corn for other food uses and in animal feed. The United States established the panel on August 17, 2023, under Chapter 31 of the USMCA. The United States brought six legal claims under the Sanitary and Phytosanitary Measures Chapter and one legal claim under the National Treatment and Market Access for Goods Chapter of the USMCA, as reflected in the United States’ request to establish a dispute settlement panel. The United States prevailed on all seven claims.
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USDA/AFBF
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