US escalates trade dispute with Mexico over genetically modified corn

[Judi Lynn]

Washington requests settlement panel under North American trade deal in push against Mexican curbs on corn imports.

17 Aug 2023

The United States has escalated its objections to Mexico’s curbs on genetically modified corn imports, requesting a dispute settlement panel under the North American trade pact, the US Trade Representative (USTR) office has said.

The request to send the dispute to arbitrators was announced on Thursday after formal consultations failed to resolve deep divisions between the two close trading partners over the use of genetically modified (GM) corn, widely produced by US farmers.

Washington alleges that a Mexican decree banning imports of GM corn used in dough and tortillas for human consumption is not based on science and violates its commitments under the US-Mexico-Canada Agreement (USMCA) on trade launched in 2020.

If the panel rules in favour of the US and Mexico fails to comply with its directives, the USTR would ultimately win the right to impose punitive tariffs on Mexican goods, a move that could spark a rare North American trade war.

More:
https://www.aljazeera.com/news/2023/8/17/us-escalates-trade-dispute-with-mexico-over-genetically-modified-corn