The United States has established a dispute settlement panel under the United States-Mexico-Canada Agreement (USMCA) regarding certain Mexican measures concerning biotech corn. The United States is challenging Mexico's ban on the use of biotech corn in tortillas or dough, and its instruction to Mexican government agencies to gradually substitute—i.e., ban—the use of biotech corn in all products for human consumption and for animal feed.
The United States argues that Mexico's measures are not based on science and undermine the market access it agreed to provide in the USMCA. The USMCA is a trade agreement between the United States, Mexico, and Canada that was signed into law in 2020. It includes a chapter on sanitary and phytosanitary (SPS) measures, which are measures that countries take to protect human, animal, or plant health. The USMCA SPS chapter requires countries to base their SPS measures on scientific evidence and to not discriminate against imports from other countries.
The United States has been trying to resolve its concerns with Mexico's biotech corn measures since January 2023. In January, the United States sent a formal request to Mexico for information about its measures. In March, the United States held technical consultations with Mexico, but the consultations did not resolve the matter. In June, the United States requested dispute settlement consultations with Mexico, but these consultations also failed to resolve the matter.
The establishment of a dispute settlement panel is the next step in the dispute process under the USMCA. The panel will be composed of three independent experts who will be tasked with determining whether Mexico's measures are inconsistent with the USMCA. If the panel finds that Mexico's measures are inconsistent with the USMCA, the United States could request that the panel authorize it to impose trade sanctions on Mexico.
The United States' decision to establish a dispute settlement panel is a significant step in the dispute. It shows that the United States is serious about enforcing its rights under the USMCA and that it is not willing to tolerate Mexico's discriminatory biotech corn measures. The outcome of the dispute will be closely watched by other countries that are considering adopting similar measures.
The United States and Mexico have a long history of trade and cooperation. The USMCA is a vital part of this relationship, and it is important that both countries work together to resolve this dispute in a way that is consistent with the agreement.
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Categories: New York, Crops, Corn, Government & Policy