A longstanding trade dispute persists between Mexico and the United States following Mexico’s decision in 2023 to prohibit the use of genetically modified (GM) corn for human consumption, a move that has sparked tensions between the two major trading partners. Despite ongoing consultations, the issue remains unresolved, posing challenges for U.S. corn exports to Mexico, the largest importer of U.S. corn.
Background
President Andrés Manuel López Obrador’s decree to ban GM corn aimed to bolster food security and safeguard native corn varieties in Mexico. However, the measure has raised concerns regarding its impact on U.S. corn exports and has triggered a formal dispute under the U.S.-Mexico-Canada Agreement (USMCA).
Dispute Proceedings
Formal dispute proceedings were initiated by the United States, alleging that Mexico’s ban violates USMCA provisions. A dispute settlement panel was convened in August 2023, with oral arguments scheduled for June 2024. The panel’s final report, anticipated in November 2024, following elections in both countries, will determine whether Mexico must rescind the ban or face trade sanctions from the United States.
Current Status
As the dispute process unfolds, Mexico’s ban on GM corn remains in effect, impacting trade relations between the two nations and raising uncertainties within the agricultural sector.
Perspective
While the dispute has been framed within the context of trade agreements, some stakeholders view it as primarily a domestic political issue in Mexico, driven by regional interests. With elections scheduled for June, there is anticipation that the issue may see resolution under a new administration. However, until then, the trade dispute continues