U.S. to fight ban of modified corn

Mexico said to defy trade ties

The Biden administration says it’s taking initial steps toward challenging a ban Mexico has placed on shipments of genetically modified corn from the United States, restrictions that have rankled farmers and threatened the profitable export.

Mexico plans to phase out the use of genetically modified corn, as well as an herbicide called glyphosate, by 2024. About 90% of corn grown in the United States is genetically modified, and Mexico is the second-largest market for U.S. corn exports, after China.

Senior White House officials have expressed concerns to the Mexican government about the measures for more than a year in virtual and inperson meetings, saying they are poised to disrupt millions of dollars of agricultural trade and cause serious harm to U.S. producers.

Earlier this week, U.S. officials said that they were requesting consultations over the issue with their Mexican counterparts under the terms of the United States-Mexico-Canada Agreement, which governs the terms of trade in North America.

Biden officials said parties to that agreement, signed in 2020, had committed to base their regulation on science and that Mexico’s ban on genetically modified corn did not conform to those promises.

The consultations are the first step in a process expected to lead to the United States bringing a formal dispute against Mexico. The parties must meet to discuss the issue within 30 days, and if the talks are not successful, the United States can turn to a separate dispute settlement procedure under the trade agreement.

Mexico’s president vowed Tuesday not to back down in the dispute. “We still have a month,” López Obrador said of the talks. “If there is no agreement, we’ll go to a panel,” he said, referring to the trade agreement’s dispute-resolution mechanism.

Senior officials with the Office of the U.S. Trade Representative said they were focused on finding a resolution through the talks at hand. But in a statement, the office said it will “consider all options, including taking formal steps to enforce U.S. rights under the [agreement]” if the issue was not resolved, including tariffs on Mexican products.

Mexico bought more than 20 million metric tons of corn from the United States in the 2021-2022 marketing year, which runs from September to August, according to the U.S. Department of Agriculture.

The country uses most of the grain to feed cattle, pigs and chickens, arguing that GM corn somehow harms the health of those who consume the animals. Mexico has not yet presented proof of such ill effects.

The National Corn Growers Association has said that the impending ban will likely be “catastrophic” for American corn producers and Mexican consumers, undermining principles of the trade agreement.

The industry has maintained that genetically modified corn is safe for human consumption.