In a significant win for U.S. corn producers, a dispute panel has ruled that Mexico violated its commitments under the United States-Mexico-Canada Agreement (USMCA) by issuing a decree banning genetically modified (GM) corn imports in early 2023. This decision comes as a relief to the National Corn Growers Association (NCGA) and other advocates who had urged the United States Trade Representative to file the dispute.
NCGA President Kenneth Hartman Jr., an Illinois farmer, hailed the ruling as "an incredible development for the nation's corn growers and rural communities." He credited the outcome to the persistent advocacy efforts of corn grower leaders across the country and expressed gratitude to U.S. officials for their responsiveness.
U.S. Grains Council (USGC) President and CEO Ryan LeGrand was quick to thank the Office of the U.S. Trade Representative, saying, “Mexico has always been a powerful partner to U.S. corn growers and exporters, so when the country tried banning GM corn imports that would have severely affected our industry, we appreciated the extra effort the U.S. Trade Representative gave in filing the dispute and seeing it through to its logical conclusion. The Council worked with the USTR and in Mexico to help ensure the dispute result was fair, and we look forward to continuing our work with our top U.S. grains-in-all-forms customer.”
The controversy began in December 2020 when Mexican President Andrés Manuel López Obrador announced plans to ban GM corn by the end of 2024. The NCGA immediately began outreach to both the Trump and Biden administrations, as well as Congress and Mexican officials, arguing that such a ban would severely impact growers and rural economies, given Mexico's status as the top export destination for U.S. corn.
“U.S. corn farmers and exporters understood how devastating this ban could have been had it been implemented, so it’s only right that mechanisms are in place within a trade agreement like USMCA when something like this happens,” said USGC Chairwoman Verity Ulibarri. “The Council believes in both free and fair trade and this decision has upheld our mission of developing markets, enabling trade and improving lives.”
The situation escalated in 2023 when Mexico issued a decree banning GM white corn, effective immediately. In response, the NCGA and state corn grower groups successfully pushed for the U.S. Trade Representative to file a dispute settlement under USMCA.
"NCGA has been active each step of the way, sounding the alarm about the impact Mexico's actions are having on farmers," Hartman stated, emphasizing that this victory demonstrates the power of corn advocacy.
The formation of dispute panels under USMCA is rare and subject to stringent requirements. With this favorable ruling, NCGA leaders plan to work closely with the U.S. Trade Representative and the incoming administration to ensure the decision is properly enforced, safeguarding the interests of American corn growers in the international market.
