BLOOMINGTON, Ill. - A month-long period of technical consultations between the Office of the U.S. Trade Representative (USTR) and Mexican health officials over Mexico’s alleged breach of the United States-Mexico-Canada (USMCA) trade agreement should soon be wrapping up. At stake: market access for genetically modified (GM) U.S. corn exports into Mexico, a nation which usually imports around 20 million metric tons of U.S. corn per year.  

According to news service Reuters, Mexico published a presidential decree on genetically modified (GM) corn stating it would ban GM corn in the diets of Mexicans and end the use of the herbicide glyphosate by Jan. 31, 2024. President Andres Manuel Lopez Obrador has said GM seeds can contaminate Mexico’s age-old native varieties and has questioned their impact on human health.

U.S. agriculture and trade officials accused Mexico of violating the terms of the USMCA trade agreement through the decree. In early March, Mexico agreed to begin a series of technical negotiations with USTR in order to settle the issue.

“The United States has threatened a trade dispute panel under a trilateral agreement with Mexico and Canada over the plan, which would ban genetically modified corn for human consumption,” a Reuters article stated. “Mexico believes the disagreement is ‘politically motivated,’ its economy ministry said.”

The wording of the presidential decree threw Mexico’s demand for corn imports into question, according to U.S. corn growers’ groups. After the USTR’s announcement in early March that they had requested technical consultations with Mexico under the Sanitary and Phytosanitary Measures (SPS) Chapter of the USMCA, Illinois Corn Growers Association (ICGA) President Matt Rush said:

“Trade is the largest market for Illinois corn and Mexico is our largest international customer for corn. Illinois corn farmers are happy to see the USTR take steps to hold Mexico to the terms they agreed to when negotiating the USMCA for trade. Resolution of this trade dispute will bring certainty to the marketplace that Illinois corn farmers need.”

Added American Farm Bureau Federation President Zippy Duvall: “Mexico’s ban on biotech corn isn’t based on science and is a clear violation of the USMCA. It not only hurts our farmers, it denies families in Mexico access to safe and affordable food. We’re grateful (U.S. trade) Ambassador (Katherine) Tai and (U.S. Ag) Secretary (Tom) Vilsack are pressing for fair access to this market.”

Illinois lawmakers have become embroiled in the trade dispute, as well. Following the announcement the U.S. would seek consultation with Mexican health and trade officials over the issue of GM corn, Illinois Sen. Tammy Duckworth noted the importance of the planned negotiations. 

“We appreciate USTR for being responsive to our letter highlighting the importance of science-based rules for agricultural trade with Mexico, and we hope to see a resolution that ensures Illinois farmers can continue to help supply Mexico with the corn they need to feed families and keep the country going,” Duckworth said. 

A news release from Illinois Rep. Nikki Budzinski indicated that she had led a bipartisan letter with Illinois Representatives Darin LaHood, Bill Foster, Mike Bost and Mary Miller urging the U.S. Trade Representative to keep all options on the table to enforce trade commitments as Mexico considers a ban on genetically modified (GM) corn from the United States. The letter also requests updates on the negotiations with Mexico from Ambassador Tai.

“Illinois farmers are the second-largest producer of corn in the United States, with a large majority of such corn grown with GM seeds. Mexico’s ban is inconsistent with the terms of the United States-Mexico-Canada Agreement,” said Budzinski. 

An article published by The Ohio University agricultural economists noted that like the World Trade Organization, USMCA has a defined legal process by which trade disputes involving its member countries are to be settled. Once other procedures have been exhausted technical consultations are the first stage of the process, the article explained, with USTR appealing via Chapter 9 of the USMCA agreement. 

“If this fails, under Chapter 31 of USMCA concerning dispute settlement, the United States can seek establishment of an independent panel to investigate and rule on Mexico’s measures relating to GM corn, which, once constituted, would be expected to present its initial report within 150 days,” according to the April 7 article, Sheldon, I., S. Lee and C. Zoller. “Where Could the US-Mexico GM Corn Dispute End Up?” (farmdoc daily). 

“After a further period of 60 days, allowing for country comments and finalization of the report, the report would be made public. Assuming the panel rules against Mexico, resolution of the dispute should then occur within 45 days, Mexico either removing its GM corn measures, providing compensation to the United States, or provision of some other remedy. If Mexico fails to implement the panel ruling, the United States would be allowed to suspend trade benefits with Mexico equivalent to the damage caused by the latter’s GM corn measures, most likely in the form of a tariff(s) against specific Mexican products.”

Certain U.S. corn producing states would be more adversely affected by the dispute with Mexico over GM corn imports than other states, the report’s authors found. The top six states in corn exports to Mexico-- Illinois, Louisiana, Iowa, Kansas, Nebraska and Missouri-- would “likely be influenced considerably” by an embargo. Other corn producing states do not export as much GM corn to Mexico. 

“For instance, over the last two years, Mexico accounted for more than 70 percent of corn exports from Illinois, compared to only two percent of corn from Ohio,” the economists reported.