Favorable outcome from USMCA dispute

The dispute settlement panel initiated and conducted via the terms of the U.S.-Mexico-Canada Agreement (USMCA) has ruled that Mexico violated the conditions of the agreement with a decree to ban genetically modified corn imports.

The decision is a positive one for Illinois corn farmers. IL Corn Growers Association (ICGA) President and Waterloo farmer Garrett Hawkins said: “The panel’s decision affirms ICGA’s position that Mexico is not abiding by the terms of the USMCA.  It's good news for Illinois corn farmers and Mexican corn importers. As the largest corn export state in the union, Illinois corn farmers are proponents of free trade agreements and of making free trade agreements work. ICGA and the National Corn Growers Association had a significant role in fighting this unscientific Mexican government overreach and urging the U.S. Trade Representative to challenge the ban that would limit Mexican buyers’ choices and reduce U.S. market access. We are so happy to see the ruling issued in our favor and look forward to building our trade relationship with our top export customer for all types of corn.” 

Mexico is the largest importer of U.S. corn, both yellow and white. The U.S.–Mexico–Canada Agreement (USMCA) was ratified and entered into action on July 1, 2020. President Lopez Obrador signed a decree eliminating the use of glyphosate and genetically engineered corn for human consumption on December 31, 2020. On February 13, 2023, Mexico published a modified decree. The USTR requested a dispute settlement panel challenging the measures on August 17, 2023.