Mexico
Mexico reached an agreement with food manufacturers to use only non-GMO corn in tortilla production across the country. The government says it plans to implement new import tariffs on white corn imports.
Over the 29 years of free trade, U.S. ag exports to Mexico increased both in terms of volume and value, although there were some years where growth was not positive.
The U.S. and Mexican governments will initiate consultations under USMCA to attempt to resolve disagreements over a Mexican decree limiting imports of corn with biotech traits.
According to researchers at Ohio State University, most U.S. states will experience a “limited effect” of the dispute in the short term. But the long-term could significantly impact states such as Illinois.
By requesting consultations, the U.S. Trade Representative began a process to come to a settlement on ag biotechnology imports to Mexico. If a settlement is not reached, the issue will move to a full-blown trade dispute.
Mexico is accusing the U.S. of playing politics over the GMO corn issue, but NCGA CEO Neil Caskey says if Mexico wants non-GMO, they’ll need to pay a premium for it instead of violating a trade pact already in place.
The U.S. appears to be pursuing a case via USMCA on the matter: “That is going to happen, because we’re essentially in a circumstance where this is not a situation that lends itself to a compromise,” Vilsack said.
Mexico’s new decree will indicate that if U.S. GMO corn passes the sanitary filters of the Federal Commission for Protection against Sanitary Risks (Cofepris), it will have no problem entering Mexico.
“With 90% of corn acreage in the U.S. being planted to biotech seeds and Mexico being the number one purchaser of U.S. corn, I’m concerned this decree is not being met with urgency it deserves,” said Sen. Grassley.
While Mexico wants to reduce its imports of corn by 30% to 40% by 2024, Mexico’s Deputy Ag Minister Victor Suarez told reporters that it cannot replace its imports of U.S. corn for livestock feed.
U.S. officials told Mexico its approach on biotech crops are still “not grounded in science,” and will face a USMCA battle if the matter is not resolved.
Mexico and Canada had challenged the U.S. method for calculating the regional content required under the USMCA trade pact for cars to have tariff-free access to the U.S.
Mexican President López Obrador hosted President Biden and Canadian Prime Minister Trudeau this week to discuss everything from methane reduction to the U.S./Mexico border wall.
“We agreed to review their proposal closely and follow up with questions or concerns,” said Tai and Vilsack in a joint statement.
Mexican Secretary of Economy Raquel Buenrostro told reporters in Mexico Wednesday the decree to bar imports of GMO crops into Mexico will be pushed back to 2025.
Vilsack urged Mexico to “find a way forward” and said that if Mexico’s plans went unchanged, the U.S. government would be forced to consider all options, including legal action under the USMCA.
President Trump said Monday that a trade “understanding” has been reached with Mexico.
President Donald Trump said he would terminate the North American Free Trade Agreement and sign a new trade accord with Mexico, potentially leaving Canada out of the bloc.
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