Mexico Softens GMO Ban; Ways and Means Chairman Says Dispute Still Necessary

The muted response of the agriculture secretary to Mexico's concessions on genetically modified corn was not enough, according to Rep. Jason Smith, R-Mo., chairman of the House Ways and Means Committee. Smith sent a letter Feb. 15 to USDA Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai arguing that it is time to initiate a formal dispute over the non-tariff-barriers.

Mexico announced Feb. 13 that it is revising a proposed ban on genetically modified corn and corn plants treated with glyphosate, which was to take effect in January 2024. Instead, the government said, corn for industrial processes, such as making Fritos, high fructose corn syrup, or corn starches, will not be restricted; nor will corn imported for animal feed, which is the large majority of U.S. corn exports to Mexico.

It also clarified that its decree does not affect canola, soybeans, cotton or other agricultural exports that use GMO seeds or the herbicide.

Vilsack said in an emailed statement: "Upon initial review, USDA is disappointed in Mexico’s new decree regarding genetically modified corn. The U.S. believes in and adheres to a science-based, rules-based trading system and remains committed to preventing disruptions to bilateral agricultural trade and economic harm to U.S. and Mexican producers. We are carefully reviewing the details of the new decree and intend to work with USTR to ensure our science-based, rules-based commitment remains firm.”

The letter from Smith and Trade Subcommittee Chairman Adrian Smith, R-Neb., said: "We are supportive of efforts 'to hammer out a solution,' but we must emphasize that these restrictions have been hanging over the heads of American farmers for over two years now and the Government of Mexico has not addressed core U.S. concerns. That is why we believe it is time to aggressively enforce USMCA by initiating a formal dispute against these measures. We must engage with the Government of Mexico from a position of strength, not weakness."

Mexico said there is a ban on GMO corn for tortillas, as well as the flour used to make tortillas. It said this does not affect imports, since Mexico is self-sufficient in its supply of non-GMO white corn. "What it is about is consolidating such sovereignty and food security in a central input in the culture of Mexicans," the Economy ministry said, according to an unofficial translation.

The USMCA bans any sanitary or phytosanitary restrictions that are not based on science; Mexico said it will now carry out scientific research on the possible impacts on people's health of genetically modified corn, and will conduct the studies in concert with foreign health agencies.

The National Corn Growers Association disagreed that Mexico is in compliance. In a press release, it said Mexico is doubling down on its position. “The Biden administration has been more than patient with Mexico as U.S. officials have sought to enforce a rules-based trading system and stand up for American farmers,” NCGA President Tom Haag said. “The integrity of USMCA, signed by Mexican President Andrés Manuel López Obrador himself, is at stake. Singling out corn -- our number one ag export to Mexico -- and hastening an import ban on numerous food-grade uses makes USMCA a dead letter unless it’s enforced.”

Senate Finance Committee Chairman Ron Wyden, D-Ore., did not respond to a request for comment on the issue on Feb. 15.