US Nears USMCA Dispute With Mexico Concerning GMO Corn
The U.S./Mexico GMO ban debate has been called into question again, this time in the form of technical consultations.
The Government of Mexico will consult with the U.S. regarding Mexico’s lack of compliance in the United States–Mexico–Canada Agreement (USMCA), according to a press release from the Office of the U.S. Trade Representative (USTR).
Mexican GMO Ban Background
Mexican President Andrés Manuel López Obrador declared in 2020 that Mexico will be phasing out certain ag biotechnology product imports, including GMO corn, in 2025.
After being approached by the U.S. in January about the trade issue, Mexico replied with a new decree, which proposed the ban be put in immediate effect, as opposed to the initial 2025 proposal.
The new decree “does not represent any impact on trade or imports, among other reasons, because Mexico is greatly self-sufficient in the production of white corn free from transgenics,” said Mexico’s economy ministry.
While USTR made its sentiments about Mexico’s GMO ban known, no official consultative action was taken at the time.
How the USCMA Dispute Process Works
Chapter 31 of the USCMA breaks down the process of how a trade dispute settlement process works. Initially, the U.S. tried to forego a dispute with Mexico through negotiations. Since recent talks have not remedied the issue, the U.S. began the formal process of a dispute, which includes:
1. Consultations
According to Congress, consultations are the initial step in invoking a dispute. This is the first step USTR took on Monday, which will require the U.S. and Mexico to meet within 30 days.
2. Establishing a Dispute Panel
This step will be the next in line if consultations do not remedy the issue. At this point, the issue would become a full-blown trade dispute and a process would take place to put three to five people on a panel for Mexico and the U.S.
3. The Panel Process
The elected panel would then examine evidence and hear oral testimony from both the U.S. and Mexico.
4. Resolving the Dispute
Once the verdict is in, the party that is found to have violated its obligations under the USMCA will have 45-days to settle the dispute. If a settlement isn't reached in that window, the "winning" party can impose tariffs on the ag products, such as GMO corn.
In Good Time
While the trade dispute is only in its first phase, some U.S. legislators, such as Sen. Chuck Grassley (R-Ia.), think the consultations were a long-time coming.
“With over 90% of the corn acreage in the United States being planted to biotech seeds and Mexico being the No. 1 purchaser of U.S. corn, I'm concerned this decree is not being met with the urgency it deserves,” he said in a February Senate Ag Committee farm bill hearing.
However, Grassley is “glad” to hear USTR is taking up measures within the USMCA.
I appreciate Amb Tai giving me news that 2day USTR announced consultations w Mexico under USMCA on ag biotechnology Since Amb Tai was going thru confirmation I warned about Mexico’s decree on banning U.S. corn imports & glad 2 see USTR finally taking action to enforce USMCA pic.twitter.com/NUUzA9DzU1 — Chuck Grassley (@ChuckGrassley) March 6, 2023
What to Expect in Consultations
As the consultations move forward, Tom Vilsack, USDA secretary, says he’s confident the evidence will find U.S.’s interpretation of USCMA measures is accurate.
“While we appreciate the sustained, active engagement with our Mexican counterparts at all levels of government, we remain firm in our view that Mexico’s current biotechnology trajectory is not grounded in science, which is the foundation of USMCA,” Vilsack said.
The next 30-days will reveal whether the trade issue will move forward to the second stage of establishing a dispute panel or be resolved in consultations.
