The Biden administration asked for USMCA consultations with Mexico over its ban on imports of GMO corn for human consumption, the last step before filing a trade complaint in the long-running dispute. Mexico pledged a “constructive dialogue” to prove its actions were justified and not a trade barrier.
“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,” said U.S. trade representative Katherine Tai on Friday.
Mexico is the largest U.S. food and ag trade partner, with two-way trade between the nations forecast at $74.7 billion this fiscal year. Mexico is the second-largest market for U.S. farm exports, behind China, and is the leading source of imports.
“In the consultations that are about to begin, Mexico [confirms] its commitment to promote a constructive dialogue through which the concerns of the United States are clarified and we reach a mutually satisfactory agreement,” said the Ministry of Economy, which holds the trade portfolio.
Besides banning the import of GMO corn for making tortillas, Mexico says it will phase out the use of the herbicide glyphosate by April 2024 and it retains the power to bar imports of GMO corn for livestock rations. Mexico is the No. 1 market for U.S. corn exports, which are mostly genetically modified. The United States was an early proponent of agricultural biotechnology and defends the safety of crops grown with genetically engineered seeds.
If the United States files a trade complaint against Mexico, the USMCA dispute resolution process could run will into the new year.