Mexico lost the dispute settlement panel against the United States related to restrictions on Mexican imports of U.S. GM corn.

According to USTR head Katherine Tai, the U.S.-Mexico, U.S.-Canada Treaty (USMCA) panel agreed with the U.S. on all seven legal claims.

It also concluded that Mexico’s measures are not based on science and undermine the market access Mexico agreed to provide in the USMCA.

In a statement, Tai said the U.S. government looks forward to continuing its 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.

Panel on GM corn

In response, in another statement, the Ministry of Economy stated that the Government of Mexico does not share the Panel’s determination, as it considers that the measures in question are in line with the principles of protection of public health and the rights of indigenous peoples, established in national legislation and international treaties to which it is a party. 

In response, in another statement, the Ministry of Economy stated that the Government of Mexico does not share the Panel’s determination, as it considers that the measures in question are in line with the principles of protection of public health and the rights of indigenous peoples, established in national legislation and in the international treaties to which it is a party. 

Despite this, the Mexican government will respect the determination, since the dispute settlement system of the USMCA is a key part of the treaty, as was demonstrated in the case on Rules of Origin in the automotive sector, which was favorable to Mexico.

USMCA

The panel issued its final report to the Parties on December 20, 2024. Under the 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 in corn to Mexico, the largest U.S. corn export market.

The present dispute challenged two sets of measures reflected in Mexico’s February 2023 presidential decree on corn: (an immediate ban on the use of GM corn in masa and tortillas, and an instruction to Mexican government agencies to phase out the use of GM corn for other food and feed uses. 

On August 17, 2023, the United States established the panel, under Chapter 31 of the USMCA and filed six legal claims under the Chapter on Sanitary and Phytosanitary Measures and one legal claim under the Chapter on National Treatment and Market Access for Goods of the USMCA, as reflected in the U.S. request for the establishment of a dispute settlement panel. The United States prevailed on all seven claims.

As part of its findings, the Panel considered that certain elements of the Decree on glyphosate and genetically modified corn, published in the Official Journal of the Federation on February 13, 2023, cannot be applied “because they are not based on an adequate risk assessment, scientific evidence and relevant international standards”.