U.S. Acts Against Mexico on Ag Trade Issues

June 5, 2023

The United States has moved to a Full-Blown Trade Dispute with Mexico over it’s GMO corn ban.

The Office of the U.S. trade representative (USTR) announced on Friday it has requested dispute settlement consultations with Mexico under the U.S.-Mexico-Canada Agreement (USMCA). 

Since Mexico’s decree, the USTR has been utilizing the dispute process built into the trade pact, but to no avail.

U.S. officials say it puts some $5 billion of U.S. corn exports to Mexico at risk and could stifle biotechnology innovation.

“The United States has repeatedly conveyed its concerns that Mexico’s biotechnology policies are not based on science and threaten to disrupt U.S. exports to Mexico to the detriment of agricultural producers, which in turn can exacerbate food security challenges. Mexico’s biotechnology policies also stifle agricultural innovation that helps American farmers respond to pressing climate challenges, increase farm productivity, and improve farmers’ livelihoods,” said Ambassador Katherine Tai. “We will continue to work with the Mexican government through these consultations to resolve our concerns and help ensure consumers can continue to access safe and affordable food and agricultural products.”

“The United States has repeatedly conveyed its concerns that Mexico’s biotechnology policies are not based on science and threaten to disrupt U.S. exports to Mexico to the detriment of agricultural producers, which in turn can exacerbate food security challenges. Mexico’s biotechnology policies also stifle agricultural innovation that helps American farmers respond to pressing climate challenges, increase farm productivity, and improve farmers’ livelihoods,” said Ambassador Katherine Tai. “We will continue to work with the Mexican government through these consultations to resolve our concerns and help ensure consumers can continue to access safe and affordable food and agricultural products.”

Background

Today’s announcement follows extensive engagement by the United States with the Government of Mexico on its biotechnology policies, including Ambassador Tai’s discussions with Mexico’s Secretary of Economy Raquel Buenrostro. 

 

The United States has used the tools provided by the USMCA in attempting to resolve concerns with Mexico’s biotechnology policies, including meetings of the USMCA Free Trade Commission, SPS Committee, and Biotechnology Working Group.

 

On January 30, 2023, the United States sent a formal, written request to Mexico under the USMCA SPS Chapter (Article 9.6.14) for “an explanation of the reasons for” and “pertinent relevant information regarding” certain Mexican measures concerning biotechnology products. Mexico provided a written response on February 14.

 

In March 2023, the United States requested and held technical consultations with Mexico regarding its biotechnology measures under the USMCA SPS chapter, but the consultations did not resolve the matter. 

 

Throughout our engagements, the United States has been clear that it would consider all options, including further steps to enforce U.S. rights under the USMCA, if Mexico did not return to science- and risk-based biotechnology policies that are in compliance with USMCA commitments. Through the action announced today, we will seek to work with the Mexican government to resolve U.S. concerns fully.

 

USTR officials have worked closely with staff from USDA on this matter, and both agencies will continue working together, in consultation with stakeholders, to obtain Mexico’s full compliance with its USMCA commitments.

 

Resource

 

Copy of the consultations request

Source: Western Ag Network, USTR