June 13, 2023

 

Canada joins US in trade dispute over Mexico's proposed limits on GM corn

 

Canada has announced its participation in a trade dispute panel initiated by the US regarding Mexico's proposed restrictions on imports of genetically modified (GM) corn, ABC News reported.

 

The US government formally requested the opening of the dispute process on June 2 after unsuccessful negotiations with Mexico.

 

The panel of experts will examine the complaint and release its findings within approximately six months. If Mexico is found to have violated the US-Mexico Canada free trade agreement, trade sanctions could be imposed.

 

Mexico aims to prohibit the use of GM corn for human consumption and potentially extend the ban to animal feed. Both the US and Canada argue that such measures would harm trade and contravene the requirements of the USMCA, which mandate that health and safety standards be based on scientific evidence.

 

Mexico is the primary importer of U.S. yellow corn, a significant portion of which is genetically modified. This corn is predominantly used as feed for livestock in Mexico, as the country does not produce sufficient feed corn domestically. While white corn is predominantly grown in Mexico for human consumption, processed products such as cornmeal chips may contain GM corn.

 

Previously, Mexico seemed inclined to avoid a major confrontation with the United States on the issue of corn; however, it did not entirely abandon the discussion of a potential ban.

 

In February, Mexico's Economy Department introduced new regulations that removed the timeline for substituting GM feed corn imports. Earlier versions of the rules raised concerns among some US growers who feared an imminent ban on GM feed corn by 2024 or 2025.

 

Although the specific date was eliminated, the rules still mention the eventual substitution of GM corn, a situation that could lead to soaring meat prices in Mexico, where inflation is already high.

 

American farmers have expressed apprehension about the potential loss of their largest export market for corn. Mexico has been importing GM feed corn from the US worth approximately US$3 billion annually.

 

The new regulations indicate that Mexican authorities will gradually replace GM feed and milled corn, but they do not specify a timeline. The potential health implications will be studied by Mexican experts in collaboration with health authorities from other countries.

 

-      ABC News