Three Days On the Job, NCGA's New CEO is Pushing for Trade Dispute Settlement Over Mexico's GMO Corn Ban

Corn planting is already underway in parts of the southern U.S., and there's still uncertainty over what Mexico's potential GMO corn ban could mean for crops planted this spring. Now, Mexico  is accusing the U.S. of playing politics over the matter, but National Corn Grower Association’s (NCGA) new CEO Neil Caskey says the U.S. isn’t the one violating the U.S., Mexico, Canada trade agreement (USMCA), and if Mexico wants non-GMO corn, they'll need to pay a premium for it instead of violating the trade pact already in place. 

The issue over Mexico’s plans to limit the amount of genetically modified corn continues to change. Initially, Mexico announced a plan in 2020 to ban the importation of GMO corn for human consumption, with the plan set to take effect in 2024. Since the initial announcement, Mexico issued more decrees, with the latest scrapping the 2024 deadline to ban genetically modified corn used for animal feed and industrial use. Instead, Mexico says the phasing out will depend on supply. However, Mexico still plans to prohibit the importation of GMO white corn used for flour and tortillas. 

Ongoing Confusion Over the Latest Decree

Even with the latest decree, there’s still uncertainty on what the decree actually means for the future of U.S. corn exports to Mexico. 

“The new decree, as we understand it, would allow for the importation of genetically modified field corn. But the caveat, and this is where it gets a little kind of wonky, is it allows for the importation of genetically modified U.S. corn until an acceptable substitute is found,” says Caskey. 

As the situation continues to evolve, the Biden Administration is actively holding conversations with Mexico regarding the ban. U.S. Agriculture Secretary Tom Vilsack now says a dispute settlement request under USMCA is likely coming next, but no official announcement has been made. 

Mexico Accuses the U.S. of 'Playing Politics'

But just this week, Mexico is firing back at the U.S., with Mexico’s economy ministry claiming the U.S.’s disagreement with Mexico’s plan is “politically motivated.”

Caskey says NCGA will continue to push to protect an important export market. In an interview with Farm Journal this week, Caskey provided a response to Mexico’s latest claim. 

“This wasn't our decree that violated a trade agreement.” says Caskey. “At the end of the day, we're trying to stand up for a science-based international trading system. And if we don't stand up for USMCA in this case, it's going to be really hard to continue to expand trade around the globe.”

NCGA Pushing for Trade Dispute Settlement 

Caskey says NCGA has been adamant the best way to resolve the issue over GMO corn in Mexico is for the U.S. Trade Representative to initiate a settlement dispute process under the trade agreement. 

“That has to happen soon, so we can continue to ship corn into Mexico unimpeded,” Caskey adds. “The industry down there wants our corn, and they need it, and we just want to be able to continue to be that supplier of choice. I've said it before, if they want non-GMO product, there are ways to do that without violating a trade agreement that that they accepted.”

Caskey says if Mexico wants non-GMO corn, then they’ll need to pay a premium for the product. 

“We've said all along, if Mexico wants non-GM corn, pay for it, and the markets will respond accordingly, but violating a trade agreement is the wrong way to go about meeting that demand if that's truly there,” says Caskey. 

Currently, 20% of Mexico’s corn imports from the U.S. consists of white corn. Considering Mexico is one of the top export markets for all U.S. corn, Caskey says corn growers are concerned about the risks of losing such a major market.  

“We sell about $5 billion worth of corn into Mexico, and that can expand up to $10 billion when you think about corn and all of its different forms,” he says. “We haven't heard of any shipments being rejected thus far, but that doesn't mean that can't happen at some point in the future.”

Related News:

Vilsack Signals USMCA Case is Coming on GMO Corn Situation in Mexico

Mexico's GMO Corn Ban Boils Over as U.S. Turns Up the Heat