Mexico’s Takes Action Towards Resolving USMCA Biotech Corn Dispute

By Goodrich, Riquelme y Asociados

The Government of Mexico took action wowards resolving the dispute under the United States-Mexico-Canada Agreement (USMCA) on Mexican biotechnology measures concerning genetically engineered corn.  

Mexico’s action declares ineffective two sets of measures that the Office of the United States Trade Representative (USTR) successfully challenged in the USMCA dispute: (1) an immediate ban on the use of GE corn in dough and tortillas and (2) an instruction to Mexican government agencies to gradually eliminate the use of GE corn for other food uses and in animal feed.  

On August 17, 2023, the United States established a dispute settlement panel under Chapter 31 of the USMCA, challenging two sets of measures reflected in Mexico’s February 2023 presidential corn decree.  The United States brought claims under the Sanitary and Phytosanitary Measures Chapter and under the National Treatment and Market Access for Goods Chapter of the USMCA.

The panel issued its final report to the Parties on December 20, 2024.  Under USMCA rules, Mexico and the United States were to endeavor to agree on a resolution of the dispute within 45 days from the date of the final report.  

In 2024, the United States exported USD 5.6 billion of corn to Mexico, the largest export market for U.S. corn.

The U.S. Government consulted with Mexico on actions it could take to resolve the dispute.  The United States, in consultation with stakeholders, will continue to monitor closely Mexico’s compliance with its USMCA commitments.