US Corn Becomes a USMCA Conflict

OMAHA (DTN) -- The ongoing battle between the U.S. and Mexico over biotech crops such as corn will be settled by a formal dispute panel under the U.S.-Mexico-Canada Agreement (USMCA).

Corn growers, grain export and biotechnology groups all credited the U.S. Trade Representative's Office on Thursday for taking the dispute to a USMCA trade panel. The case essentially pits the U.S. corn and grain industry against the country's largest export market for corn to keep that market open.

U.S. Trade Ambassador Katherine Tai said Mexico's attempts to ban biotech corn products from the U.S. is a clear violation of the science standards in the USMCA.

"The United States has used the tools provided by the USMCA in attempting to resolve concerns with Mexico's biotechnology measures. Today, the United States is taking the next step in enforcing Mexico's obligations under the USMCA," Tai said in a news release. "Through the USMCA dispute panel, we seek to resolve our concerns and help ensure consumers can continue to access safe and affordable food and agricultural products. It is critical that Mexico eliminate its USMCA-inconsistent biotechnology measures so that American farmers can continue to access the Mexican market and use innovative tools to respond to climate and food security challenges. Our bilateral relationship with Mexico, one of our oldest and strongest trading partners, is rooted in trust and honesty, and there are many areas where we will continue to cooperate and work together."

Agriculture Secretary Tom Vilsack added that Mexico's actions run counter to decades of evidence on the safety of biotech crop products, as well as the "rigorous, science-based regulatory review system" used to approve those products.

"Innovations in agricultural biotechnology play a key role in advancing solutions to our shared global challenges, including food and nutrition insecurity, the climate crisis and the lingering effects of food price inflation," Vilsack said. "By requesting the establishment of a dispute settlement panel with Mexico, the United States is continuing to exercise its rights under the USMCA to ensure that U.S. producers and exporters have full and fair access to the Mexican market. We will continue to support fair, open, science- and rules-based trade, which serves as the foundation of the USMCA as it was agreed to by all parties."

The conflict, which goes back more than a year, is tied to Mexican President Andres Manuel Lopez Obrador pushing decrees in his government to ban imports of biotech corn.

The dispute panel comes after the U.S. in early June announced it would hold "dispute settlement consultations" with Mexico that were meant to resolve the issue. Those talks lasted 75 days and came to no conclusion. Canada also has joined the case as a third party, backing the U.S. stance over Mexico's decree.

Mexican officials earlier this month complained that the U.S. was not cooperating in an attempt by the Mexican government to collect studies on the safety of biotech corn products.

The U.S. is specifically challenging a Mexican presidential decree issued last February that it would specifically ban the import of white corn from biotech crops in the U.S. meant for food-grade products such as tortillas or dough. Mexico's decree also calls for gradually phasing out imports of biotech corn for livestock feed.

"Mexico's measures are not based on science and undermine the market access it agreed to provide in the USMCA," the USTR stated in a news release Thursday.

Mexico remains the top buyer of U.S. corn. With just a few weeks left in the marketing year for the 2022-23 corn crop, USDA shows Mexico has purchased more than 14 million metric tons of corn from the 2022-23 crop, more than twice as much as any other country.

The U.S. Grains Council, the Biotechnology Industry Organization (BIO) and National Corn Growers Association were among those supporting the USTR announcement. Lawmakers from major corn-producing states also praised the announcement.

"We must continue using every available option to stop this unscientific and economically damaging ban on genetically modified corn from coming into effect. It would harm Nebraska producers, hurt consumers in Mexico, and sabotage international trade," said U.S. Sen. Deb Fischer, R-Neb. "As I have said before, there can be zero compromise with Mexico on this issue."

Read the U.S. dispute resolution request here: https://ustr.gov/….

Chris Clayton can be reached at Chris.Clayton@dtn.com

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