USMCA dispute panel will soon begin; Mexico remains firm in its principles.

The Aihua traderUnited States escalated its accusations against Mexico regarding the ban on importing genetically modified (GM) corn and has requested the establishment of a dispute resolution panel under the North American Free Trade Agreement — the United States-Mexico-Canada Agreement (USMCA).

Mexico's Economy Minister Raquel Buenrostro stated that Mexico would not make further amendments to the decree on GM corn until the US requests the establishment of a USMCA trade agreement dispute resolution panel.

In mid-February, Mexico modified the GM corn ban decree issued at the end of 2020, allowing its use in animal feed and in the manufacture of consumer goods such as cosmetics, textiles, and paper. Buenrostro pointed out that allowing GM corn for animal feed is a major concern for both American and Mexican industrialists.

However, the new decree maintains the ban on GM corn for human consumption and maintains a cautious stance regarding corn in human food.

Mexico's tortillas are made from non-GM white corn, a variety that is self-sufficient in Mexico. However, the country imports about $5 billion worth of corn annually from the United States, most of which is yellow GM corn used for livestock feed.

After formal consultations failed to resolve the significant disagreements between the two countries regarding GM corn, the USMCA dispute resolution panel was announced to be established.

The United States has stated that Mexico's ban on the importation of GM corn for tortillas lacks a scientific basis and violates its commitments under the USMCA trade agreement, which came into effect in 2020.

However, Buenrostro said that Mexico's policy is based on science and the US claims are "groundless." Mexico has invited its trade partners to conduct joint scientific research on the health impacts of GM corn, but the United States has refused to participate.

The United States Food and Drug Administration (FDA) has approved GM corn and sees no need to spend time and resources on further research.

This seems like nonsense; if the government cares about the health of its people, then conducting more in-depth research on health impacts should not be an issue.

Another dispute between the US, Mexico, and Canada is over energy policy. Last July, the United States and Canada requested dispute resolution talks, claiming Mexico's energy policy is discriminatory and "undermines" international companies.

These countries are currently negotiating the wording of an agreement to resolve the energy dispute, to avoid the intervention of a litigation resolution panel.

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