USMCA Panel Rules Against Mexico's GM Corn Ban
Major victory for U.S. corn growers in USMCA trade dispute
In a significant development for the U.S. agricultural sector, a dispute panel has ruled that Mexico violated its commitments under the United States-Mexico-Canada Agreement (USMCA) by issuing a decree banning genetically modified (GM) corn imports in early 2023. This decision marks a crucial win for American corn growers and has been met with enthusiasm from industry advocates.
The National Corn Growers Association (NCGA) and other agricultural organizations have praised the ruling, viewing it as a vindication of their persistent advocacy efforts. NCGA President Kenneth Hartman Jr. hailed the decision as "an incredible development for the nation's corn growers and rural communities," attributing the outcome to the collective voice of corn grower leaders across the country.
The dispute traces back to December 2020, when Mexican President Andrés Manuel López Obrador first announced plans to ban GM corn by the end of 2024. This move immediately raised concerns in the U.S. Corn Belt, prompting the NCGA to initiate outreach to both the Trump and Biden administrations.
Mexico's position intensified in early 2023 with the issuance of a decree banning GM white corn, effective immediately. This action spurred the NCGA and state corn grower groups to push for a formal dispute settlement under the USMCA, which the U.S. Trade Representative ultimately pursued.
The ruling carries substantial economic implications, given that Mexico is the largest export market for U.S. corn. Over 90% of corn planted in the United States is biotech, and between January and September 2024, the U.S. exported $4.25 billion worth of corn to Mexico. The ban threatened to disrupt this crucial trade relationship and potentially cause significant losses for U.S. farmers.
Next steps. With this favorable ruling, NCGA leaders have indicated they will work closely with the U.S. Trade Representative and the incoming administration to ensure the decision is enforced.
