The United States notified Mexico on Thursday of its intention to settle the differences between the two countries regarding Mexico’s regulation of genetically modified corn.

The United States considers that certain provisions of the Decree establishing various actions regarding glyphosate and genetically modified corn, published in the Official Journal of the Federation on February 13, 2023, could be incompatible with provisions of Chapters 2 (Market Access) and 9 (Sanitary and Phytosanitary Measures) of the USMCA «Mexico does not agree with the U.S. position. The Ministry of Economy is prepared to defend the Mexican position before this international panel and demonstrate: 1) that the national regulation is consistent with the commitments subscribed to in the Treaty; and 2) that the challenged measures do not have trade effects,» said the Ministry of Economy in a statement.

The USMCA maintains the market access conditions agreed under NAFTA. Therefore, all goods originating in the region have a 0% tariff, except for some products from the poultry, dairy and food preparations with sugar content, whose access to the Canadian market is still restricted.

As agreed, Mexico maintained access to 100% of tariff lines with the United States and 99.2% with Canada; 0.8% of the remaining lines with Canada are still subject to import tariffs. Mexico does not maintain tariff rate quotas under the Agreement.

Mexico’s defense will be supported by various federal government agencies responsible for the matter, such as the Ministry of the Environment and Natural Resources, the National Council of Humanities, Sciences and Technologies (Conahcyt) and the Federal Commission for Protection against Health Risks (Cofepris).

Genetically modified corn

The next procedural stage will be the appointment of the members of the Panel. Subsequently, such panelists must issue a procedural calendar.

According to the deadlines foreseen in the Treaty itself, it is estimated that the Panel’s decision may be announced in the course of 2024.

One of the advantages of the USMCA is that it has clear rules to resolve disagreements between trading partners and thus provide certainty to all parties.

The Ministry of Economy reiterated its willingness to comply with the commitments made in the USMCA , to act in accordance with the law and to represent the national interest.