A trade dispute panel under the U.S.-Mexico-Canada Agreement ruled on Friday that Mexico violated the trade accord with its ban on genetically modified corn for human consumption.
The decision was a win for the agribusiness industry and the Biden administration, which called for the panel in August of last year after negotiations with the Mexican government failed. However, civil society groups condemned the ruling, saying it overlooked threats to the environment, public health, and Indigenous rights while overstating potential harm to U.S. corn exporters.
"The panel ignores the mountains of peer-reviewed evidence Mexico presented on the risks to public health and the environment of genetically modified (GM) corn and glyphosate residues for people in Mexico who consume more than 10 times the corn as we do in the U.S. and do so not in processed foods but in minimally processed forms such as tortillas," Timothy A. Wise, an investigative journalist with U.S. Right to Know, told Common Dreams. "Mexico's precautionary policies are indeed well-grounded in science, and the U.S. and the U.S.-Mexico-Canada Agreement (USMCA) have no business using a trade agreement to undermine a domestic policy that barely affects trade between the two countries."
"This ruling will make winners out of agrochemical corporations and losers out of everyone else."
Then-Mexican President Andrés Manuel López Obrador (AMLO) first announced a ban on GM corn and glyphosate in 2020, to go into effect by 2024. This was then amended in February 2023 to scratch the 2024 deadline for animal feed and industrial uses of corn, but immediate ban GM corn for tortillas and tortilla dough. While the deleted deadline was widely seen as a concession to pressure from the Biden administration, the U.S. still went ahead with challenging the rule under the USMCA.
In response to Friday's decision, U.S. Agriculture Secretary Tom Vilsack commended the panel for affirming that "Mexico's approach to biotechnology was not based on scientific principles or international standards."
"Mexico's measures ran counter to decades' worth of evidence demonstrating the safety of agricultural biotechnology, underpinned by science- and risk-based regulatory review systems," Vilsack continued. "This decision ensures that U.S. producers and exporters will continue to have full and fair access to the Mexican market, and is a victory for fair, open, and science- and rules-based trade, which serves as the foundation of the USMCA as it was agreed to by all parties."
Yet several U.S. environmental groups backed Mexico's case and said the science used by the U.S. to establish the safety of GM corn was out-of-date and insufficient. For example, the U.S. relies on studies from when GM or genetically engineered corn was first introduced to the market and does not account for how pesticides and herbicides are currently used on the corn.
"Trade agreements should not allow multinational pesticide and biotech companies to imperil the health of people and the environment," said Kendra Klein, PhD, deputy director of science at Friends of the Earth U.S. "The science is clear that GMO corn raises serious health concerns and that production of GMO corn depends on intensive use of the toxic weedkiller glyphosate."
Mily Treviño-Sauceda, the executive director of the Alianza Nacional de Campesinas, condemned Friday's decision.
"Mexico's policies to ban the use of GM corn and glyphosate were enacted to protect biodiversity, cultural heritage, and the rights of Indigenous people," Treviño-Sauceda said. "This decision will continue to adversely impact the quality and nutritional value of food reaching Mexican households. This is just another step in the direction of consolidating agricultural power to the U.S. agro-industrial complex that we will continue to challenge until we see real change for the benefit of the public and our health."
Other trade justice and agricultural advocates said the decision was a missed opportunity to transform trade and food systems beyond Mexico.
"The USMCA was hailed as a new kind of trade agreement, taking some steps forward on issues like labor rights and investment," said Karen Hansen-Kuhn, director of trade and international strategies at the Institute for Agriculture and Trade Policy. "This dispute shows how far we still need to go. Mexico has every right to try to transform its food system to better feed its people and enhance rural livelihoods and biodiversity. The U.S. was wrong to challenge that initiative, and the panel is wrong to back them up"
Farm Action President Angela Huffman added: "We are disappointed in the panel's ruling today, which shows the U.S. successfully wielded its power on behalf of the world's largest agrochemical corporations to force their industrial technology onto Mexico. Mexico's ban GM corn and glyphosate presented a tremendous premium market opportunity for non-GM corn producers in the U.S. Instead of helping U.S. farmers transition to non-GM corn production, our government has continued to force GM corn onto people who don't want it and propped up agrochemical corporations based in other countries—such as Germany's Bayer and China's Syngenta. This ruling will make winners out of agrochemical corporations and losers out of everyone else."
Business interests, on the other hand, reacted positively to the news.
"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," Emily Rees, president of plant-science industry group CropLife International, said, as Reutersreported.
The president of the U.S. National Corn Growers Association, Kenneth Hartman Jr., also celebrated the news, saying, "This outcome is a direct result of the advocacy efforts of corn grower leaders from across the country," according toThe Associated Press.
The Mexican government said it disagreed with the decision, but would abide by the panel's ruling.
"The Mexican government does not agree with the panel's finding, given that it considers that the measures in question are aligned with the principles of protecting public health and the rights of Indigenous communities," the country's Economy Department said. "Nonetheless, the Mexican government will respect the ruling."
The decision comes as U.S. President-elect Donald Trump has threatened to set a 25% tariff on all imports to the U.S. from Mexico and Canada unless the two countries decrease the number of migrants and the amount of fentanyl that enters the U.S. via their borders. As this would likely violate the USCMA, it puts additional pressure on Mexico to abide by the agreement in order to reinforce norms against Trump's challenge.
Wise criticized the panel for ruling against Mexico when real threats to trade governance loom on the horizon.
"At a time when the U.S. president-elect is threatening to levy massive tariffs on Mexican products, a blatant violation of the North American trade agreement, it is outrageous that a trade tribunal ruled in favor of the U.S. complaint against Mexico's limited restrictions on genetically modified corn, which barely affect U.S. exporters," Wise said in a statement.
