USMCA Dispute Panel Rules Against Mexico in Their Biotech Corn Import Ban

A dispute panel ruled today that Mexico violated its commitments under the United States-Mexico-Canada Agreement (USMCA) when it issued a decree that banned genetically modified corn imports in early 2023.

The decision was met with praise from ag leaders, including Ted McKinney, CEO of the National Association of State Departments of Agriculture (NASDA).

“This is terrific news for science-based decision making. I’m thrilled at the decision. Now, let’s just hope that Mexico will abide in full by it with the decision including yellow corn and white corn,” says McKinney.

The National Corn Growers Association (NCGA) also called on the United States Trade Representative (USTR) to file the dispute.

“This is an incredible development for the nation’s corn growers and rural communities,” said NCGA President Kenneth Hartman Jr. “This outcome is a direct result of the advocacy efforts of corn grower leaders from across the country. We want to thank the nation’s growers for speaking out and U.S. officials for listening and acting.”

Mexican President Andrés Manuel López Obrador first set off alarms in the Corn Belt in December 2020 when he initiated a decree to ban genetically modified corn by the end of 2024. Obrador has since left office and has been succeeded by President Claudia Sheinbaum as of Oct. 1, 2024, but has did not lifted the previous decree since taking office.

U.S. ag leaders argued that the ban would significantly harm growers and rural communities, especially because Mexico is the number one export destination for U.S. corn.

NCGA’s efforts intensified in February 2023 when the Mexican president issued a decree banning genetically modified white corn, effective the following day. NCGA and state corn grower groups responded by pushing USTR to file a dispute settlement under USMCA, which it eventually did.

“NCGA has been active each step of the way, sounding the alarm about the impact Mexico’s actions are having on farmers,” Hartman said. “This win illustrates the power of corn advocacy.”

U.S. Grains Council (USGC) President and CEO Ryan LeGrand was quick to thank the Office of the U.S. Trade Representative.

“Mexico has always been a powerful partner to U.S. corn growers and exporters, so when the country tried banning GM corn imports that would have severely affected our industry, we appreciated the extra effort the U.S. Trade Representative gave in filing the dispute and seeing it through to its logical conclusion. The Council worked with the USTR and in Mexico to help ensure the dispute result was fair, and we look forward to continuing our work with our top U.S. grains-in-all-forms customer,” says LeGrand.

Since the enactment of USMCA, the formation of dispute panels has been uncommon and must meet a high threshold of requirements. Now that a decision has been made, Ag leaders say they will work with USTR and the incoming administration to ensure the ruling is enforced.

Sources: National Corn Growers Association, National Association of State Departments of Agriculture, U.S. Grains Council.