In 2023, Mexico, the largest importer of U.S. corn, banned the use of genetically modified (GM) corn for human consumption, prompting a trade dispute with the United States. The U.S.-Mexico-Canada Agreement (USMCA) does not mandate GM crop authorization but requires science-based analyses for regulatory decisions. President Andrés Manuel López Obrador’s decree aimed to promote food security and protect native corn varieties but posed concerns for U.S. corn exports. Despite U.S./Mexico consultations, the dispute remains unresolved.
The U.S. initiated formal dispute proceedings, claiming the ban violates USMCA provisions. A dispute settlement panel was convened in August 2023, with oral arguments scheduled for June 2024. The panel’s final report, expected in November 2024 – after elections in both countries – will determine if Mexico must revoke the ban or face U.S. trade sanctions. Until then, Mexico’s ban remains in place.
Perspective: We and U.S. government officials have contended all along this is primarily a domestic political issue in Mexico because López Obrador is from southern Mexico where most of the tortillas are made. This issue should go away after elections in June, when López Obrador is replaced by a new president.
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