U.S. trade officials are firing a final warning shot over Mexico’s ban on corn grown using biotech and certain herbicides.
The Office of the United States Trade Representative (USTR) is requesting “technical consultations” with the government of Mexico under a specific portion of the U.S.-Mexico-Canada Agreement (USMCA). That consultation will initiate formal discussions between leaders from both countries.
If that step doesn’t solve the issue, the U.S. can then initiate a dispute settlement under USMCA — something ag industry groups, including the National Corn Growers Association (NCGA), have spent months pushing for.
Once a USMCA dispute settlement is filed, a group of experts are brought in to hear the case and make final determinations based on the commitments of the free trade agreement. This has largely been seen as a last resort from U.S. officials who hoped for a deal without needing a formal dispute.
“We are pleased USTR is taking the next step to hold Mexican officials accountable for the commitments they made under USMCA, which include accepting both biotech and non-biotech commodities,” said NCGA President Tom Haag, who noted the move puts the U.S. “one step away” from a full dispute being filed.
“Mexico’s position on biotech corn is already creating uncertainty, so we need U.S officials to move swiftly and do everything it takes to eliminate this trade barrier in the very near future.”
Mexican President Andrés Manuel López Obrador first issued the decree banning biotech corn imports in 2020, which was ultimately delayed until 2025. Since then it’s been an exhausting roller coaster for American corn growers, with Mexico shifting from wanting to make a dealto immediately implementing a ban on white corn imports in February.
That move came after the U.S. flatly rejected a proposed deal from Mexico in January 2023, saying they had “grave concerns” over the decree not being grounded in science.
“We remain unequivocal in our stance that the science around agricultural biotechnology has been settled for decades,” Ag Secretary Tom Vilsack wrote in a statement following the USTR announcement.
“We remain hopeful that our concerns can be fully addressed but, absent that, we will continue to pursue all necessary steps to enforce our rights under the USMCA to ensure that U.S. producers and exporters have full and fair access to the Mexican market.”
Mexico is the top trading partner for U.S. corn, importing more than 20 million metric tons in 2021-22 marketing year.
Source: https://www.michiganfarmnews.com/
Categories: Michigan, Crops, Corn