In a major win for the nation’s corn growers, a dispute panel ruled today that Mexico violated its commitments under the United States-Mexico-Canada Agreement when it issued a decree that banned genetically modified corn imports in early 2023.
The decision was met with praise from the National Corn Growers Association (NCGA) and other corn grower advocates who had called on the United States Trade Representative to file the dispute.
“This is an incredible development for the nation’s corn growers and rural communities,” said Illinois farmer and NCGA President Kenneth Hartman Jr. “This outcome is a direct result of the advocacy efforts of corn grower leaders from across the country. We want to thank the nation’s growers for speaking out and U.S. officials for listening and acting.”
Mexican President Andrés Manuel López Obrador first set off alarms in the Corn Belt in December 2020 when he initiated a decree to ban genetically modified corn by the end of 2024. At the time, NCGA began outreach to the Trump administration to head off the ban. Those efforts continued with the Biden administration as well as with members of Congress and Mexican officials.
The organization’s leaders argued that the ban would significantly harm growers and rural communities, especially because Mexico is the number one export destination for U.S. corn.
NCGA’s efforts intensified in 2023 when the Mexican president issued a decree banning genetically modified white corn, effective the following day. NCGA and state corn grower groups responded by pushing USTR to file a dispute settlement under USMCA, which it eventually did.
“NCGA has been active each step of the way, sounding the alarm about the impact Mexico’s actions are having on farmers,” Hartman said. “This win illustrates the power of corn advocacy.”
Since the enactment of USMCA, the formation of dispute panels has been uncommon and must meet a high threshold of requirements. Now that a decision has been made, NCGA leaders say they will work with USTR and the incoming administration to ensure the ruling is enforced.
Now, under USMCA rules, Mexico has 45 days from the date of the final report to comply with the Panel’s findings. From January through October 2024, the United States exported $4.8 billion of corn to Mexico, the United States’ largest export market for corn.
“The panel’s ruling reaffirms the United States’ longstanding concerns about Mexico’s biotechnology policies and their detrimental impact on U.S. agricultural exports,” said Ambassador Katherine Tai.“It underscores the importance of science-based trade policies that allow American farmers and agricultural producers to compete fairly and leverage their innovation to address climate change and enhance productivity. We look forward to continuing our collaboration with the Mexican government to ensure a level playing field and provide access to safe, affordable, and sustainable agricultural products on both sides of the border.”
Other ag groups have started to respond to the ruling announced on Friday.
U.S. Grains Council (USGC) President and CEO Ryan LeGrand was quick to thank the Office of the U.S. Trade Representative, saying, “Mexico has always been a powerful partner to U.S. corn growers and exporters, so when the country tried banning GM corn imports that would have severely affected our industry, we appreciated the extra effort the U.S. Trade Representative gave in filing the dispute and seeing it through to its logical conclusion. The Council worked with the USTR and in Mexico to help ensure the dispute result was fair, and we look forward to continuing our work with our top U.S. grains-in-all-forms customer.”
“U.S. corn farmers and exporters understood how devastating this ban could have been had it been implemented, so it’s only right that mechanisms are in place within a trade agreement like USMCA when something like this happens,” said USGC Chairwoman Verity Ulibarri. “The Council believes in both free and fair trade and this decision has upheld our mission of developing markets, enabling trade and improving lives.”
Emily Rees, President and CEO of CropLife International, said in a statement that “This is the clearest of signals that upholding free-trade agreements delivers the stability needed for innovation to flourish and to anchor our food security. I applaud the U.S. and Canadian Governments for taking steps to ensure that the commitments and obligations under free-trade agreements are upheld and look forward to a resumption of access for all parties to the agricultural innovations so crucial to lives and livelihoods alike.”
Andy LaVigne, President and CEO of the American Seed Trade Association (ASTA) said in a statement that “we applaud the outcomes of the panel, and we are actively reviewing the findings – which reiterate the importance of science-based approaches for vital agricultural products. Over 90% of U.S. corn production relies on biotech seeds, because these technologies are safe, they improve farmers’ yields, and they help us grow crops that are better for the environment. Mexico’s decrees over the past five years have created massive uncertainty for our farmers, businesses, and seed developers. We look forward to discussing the outcomes of this case with the incoming Trump Administration.”
