MEXICO CITY — On Friday, a significant ruling was issued favoring the United States in a trade dispute with Mexico that involved a proposed ban on the importation of genetically modified corn intended for human consumption. U.S. corn producers, concerned about losing their largest export market, hailed this decision as a substantial victory. The ruling came from a panel of experts established under the U.S.-Mexico-Canada Agreement, recognized as the USMCA.

The Economy Department of Mexico expressed its disagreement with the panel’s findings but acknowledged its obligation to conform to the ruling. They emphasized their belief that the initiatives in question align with efforts to safeguard public health and the rights of Indigenous peoples within the country. Nevertheless, the government asserted its intention to respect and implement the panel’s decision.

For years, Mexico has imported genetically modified corn from the U.S., purchasing approximately $3 billion worth annually. This corn primarily serves as livestock feed in Mexico; however, the country announced a plan to ban its use for human food in 2020 and hinted at similar restrictions for animal feed in the future. The U.S. sought the dispute resolution panel in 2023 over the limitations Mexico aimed to impose on genetically modified corn.

Mexican officials had previously contended that the debated measures did not impact trade and did not constitute a violation of the trade agreement. The U.S. Trade Representatives Office (USTR) declared its objections to Mexico’s ban on genetically modified corn for human consumption and its plans for an eventual prohibition concerning animal feed. According to the USTR, the ruling panel fully sided with the U.S., declaring that Mexico’s stance was unscientific and undermined the market access that Mexico committed to within the USMCA framework.

The ruling was welcomed by the U.S. National Corn Growers Association, with its president, Kenneth Hartman Jr., stating that this outcome was a direct result of the diligent advocacy efforts made by corn growers nationwide. Mexico stands as the principal importer of U.S. yellow corn, with the majority being genetically modified. Nearly all of this corn is intended for feeding livestock due to Mexico’s inability to cultivate sufficient feed corn.

In contrast, corn designated for human consumption in Mexico is predominantly locally grown white corn, even though some processed products such as corn-meal chips might potentially include genetically modified corn. The Mexican government has raised concerns about potential health impacts from biotech corn, even when utilized for livestock feed, although concrete evidence to support these claims has not yet been brought forward.

Initially, Mexico appeared to seek a diplomatic resolution regarding these trade concerns with the U.S., but discussions regarding a ban have not ceased. Earlier this year, Mexico’s Economy Department revealed new regulations that removed timelines for the replacement of genetically modified feed corn imports. This announcement noted a gradual transition from GM feed and milled corn, although it did not set definitive deadlines and outlined that any associated health concerns would be further studied by Mexican health experts and their counterparts from other countries.

Previous versions of the regulations had led to fears among U.S. growers that the ban could come into effect as soon as 2024 or 2025. Although the new rules did not institute a fixed timeline, they retained language indicating that a replacement for GM corn would eventually occur, a move that raised concerns regarding potential price hikes for meat products in Mexico amid already existing high inflation.