US seeks consultations with Mexico on limits on GM corn

MEXICO CITY (AP) — The U.S. government escalated its trade dispute over Mexico’s proposal to impose limits on genetically modified corn, calling for formal consultations Monday on the issue with its southern neighbor.

The Office of the United States Trade Representative (USTR) announced the request for consultations with Mexico on proposed rules that would ban genetically modified corn for human consumption. The Mexican government has said it may eventually ban it for animal consumption as well.

The USTR noted that the ban could “threaten to affect billions of dollars in agricultural trade”.

Mexico is the main importer of American corn, most of which is genetically modified. Almost all of it goes to feed cattle, pigs and chickens in Mexico, which does not produce enough corn to supply itself.

The Mexican government argues that GM corn could have negative health effects even when used as fodder, but has not provided evidence. If the matter is not resolved during consultations, it could be taken to a dispute resolution panel or result in trade sanctions under the treaty between Mexico, the United States and Canada, known as the USMCA.

“The United States has repeatedly expressed its serious concerns about Mexico’s biotechnology policies and the importance of adopting a scientific position that respects its commitments to the USMCA,” said the American representative at the commerce, Katherine Tai, in a statement.

“Mexico’s policies threaten to affect billions of dollars in agricultural trade and, if left unaddressed, will stifle the innovation needed to tackle the climate crisis and food security challenges,” he said. he added in the text.

Mexico’s economy ministry said in a statement on Monday that the issue is not yet a trade dispute, although consultations are the first step in that process, and said it was confident the disagreement could be resolved.

On other occasions, Mexico has been quick to avoid a major confrontation with the United States over this issue, but not enough to stop talking about a possible ban.

Last month, the Ministry of Economy published new rules in which it removed the date of substitution of genetically modified corn for food purposes. Some imported corn is also consumed in tortilla chips and other snacks.

Under an earlier version of the rules, some U.S. farmers fear a ban on GM corn could come as soon as 2024 or 2025.

Although the date was removed, the wording of the rules on the possible replacement of GM maize was retained, which could drive up meat prices in the country, which already faces high inflation.

US farmers are worried about the possible loss of their main export market for corn. Mexico has been importing GM corn for human consumption from the United States for years, buying it for about $3 billion a year.

The new rules still state that Mexican authorities will proceed with a gradual substitution of GM corn for milling and fodder, but do not set a date for this, and say that Mexican experts will study possible health problems with “the agencies of health of other countries. “”.

“Concerning the use of genetically modified maize for fodder and industry, the ban on its use is removed, subject to the existence of a sufficient supply”, specifies the Ministry of the Economy in the communicated. “Working tables will be set up with the national and international private sector to achieve an orderly transition.”

Mexico was where corn was first domesticated around 9,000 years ago, and the country will continue to ban GM seed imports to protect native varieties.

The Mexican government will also ban the use of GM corn for direct human consumption, which in the country means mostly white corn and white corn flour for tortillas. Mexico does not need to import white corn from the United States, where most corn is yellow or sweet.

The United States has also been unhappy with Mexico’s limits on private and foreign power plants in the country, but Washington has yet to raise the issue in the USMCA dispute resolution process.

The US government says Mexico unfairly favors its state-owned electric and oil companies over US competitors and clean energy providers. Canada also joined in this complaint. Mexico says it protects a majority slice of its national energy market for the government-owned Federal Electricity Commission.