Mexico lost the dispute resolution panel against the United States regarding the restrictions imposed by the Mexican government on imports of American transgenic corn. This was reported this Friday by the Ministry of Economy and the Office of the White House Trade Representative (USTR).
Katherine Tai, representative of the USTR, explained that the panel of the Treaty between Mexico, the United States and Canada (T-MEC) ruled in favor of the United States on the seven legal points presented. According to the ruling, the measures implemented by Mexico lack scientific support and affect the market access established in the trade agreement.
“The panel’s ruling reaffirms long-standing U.S. concerns about Mexico’s biotechnology policies and their detrimental impact on U.S. agricultural exports,” Tai said.
According to Katherine Tai, the ruling highlights the importance of establishing trade policies based on scientific criteria. These policies allow American farmers and agricultural producers to compete fairly, take advantage of innovation to address climate change and improve their productivity.
“We look forward to continuing to work with the Mexican government to ensure a level playing field and facilitate access to safe, affordable and sustainable agricultural products on both sides of the border,” Tai added in a press release.
The panel issued its final report to the parties involved on December 20, 2024. According to the rules of the USMCA, Mexico has 45 days from that date to comply with the conclusions established by the panel.
Between January and October 2024, the United States exported corn to Mexico worth $4.8 billion, consolidating itself as its main export market for this product.
The dispute centered on two measures included in Mexico’s February 2023 presidential decree on corn: an immediate ban on the use of GM corn in the production of masa and tortillas, as well as a directive for Mexican government agencies to phase out the use of GM corn for other food uses and as animal feed.
The United States initiated the dispute resolution process on August 17, 2023, under Chapter 31 of the USMCA, filing six legal claims under the Sanitary and Phytosanitary Measures Chapter, and an additional claim under the National Treatment and Market Access for Goods Chapter. The panel ruled in favor of the United States on all seven points raised.
Among the panel’s conclusions, it was determined that some aspects of the decree on glyphosate and genetically modified corn, published in the Official Gazette of the Federation on February 13, 2023, are not applicable, since they lack an adequate risk assessment, well-founded scientific evidence, and alignment with relevant international standards.
In a statement, the Ministry of Economy expressed its disagreement with the Panel’s decision, arguing that the questioned measures are in accordance with the principles of protection of public health and the rights of indigenous peoples, enshrined in national legislation and in the international treaties that Mexico has signed.
However, the Government of Mexico will abide by the Panel’s decision, recognizing that the USMCA’s dispute resolution system is essential to the treaty, as demonstrated in the case on the Rules of Origin in the automotive sector, which was favorable for the country.
“The Mexican administration reaffirms its commitment to protecting fundamental values such as health, public morality, conservation of natural resources, national culture and the rights of indigenous peoples, concerns that the Panel recognized as legitimate,” the Ministry of Economy stated.
Mexico, through the Ministry of Economy, the Ministry of Agriculture and Rural Development and other agencies, will continue working to defend the rights of citizens in compliance with its international commitments.
