A diplomatic solution may be close that will end Mexico’s plan to ban imports of GMO corn by 2024. Mexico’s Secretary of Economy Raquel Buenrostro now states that if the Federal Commission for Protection against Sanitary Risks determines U.S. GMO corn is not a threat to human health, it will have no problem entering Mexico. The new decree coming in the next few days will address U.S. concerns and should eliminate the possibility of the U.S. starting a dispute settlement process against Mexico under the U.S.-Mexico-Canada Agreement.
The U.S. ag industry is hopeful this will resolve the trade dispute because it could impact U.S. agricultural exports of not just corn, but a host of other products including beef and pork. This would be devastating with Mexico the top customer for U.S. pork this last year by volume and a big export destination for U.S. beef and cattle as well.
Officials with the U.S. Meat Export Federation say they are keeping their eyes on the outcome and have considered it a possible threat to meat exports. Dan Halstrom, USMEF President and CEO says, “We’re very aligned as an industry, I mean corn producers are big customers of the pig industry and you know it’s all the supply chain is all connected. So, we’re hopeful that the USTR can work out something in very equitable way with Mexico.”
Halstrom says the U.S. and Mexico have had a long-standing trading relationship that goes back to NAFTA, and it is one that is mutually beneficial. “I think Mexico is pretty reasonable and there’s political positioning and then there’s the real world. Hopefully they can work something out for the benefit of all because you know they really rely on us for ag, not only pork and beef but corn as well.” So, he’s optimistic the two countries will get something worked out and is hopeful about the announced decree.
U.S. Trade Representative Katherine Tai threatened Mexico during their last meeting that the U.S. could take Mexico to task through a USCMA dispute settlement panel if they moved forward with plans to ban GMO corn by 2024. The U.S. has already taken action against Canada on dairy so there is already a precedent.
