In a significant ruling for U.S. farmers, a trade dispute panel has found that Mexico’s restrictions on genetically modified (GM) corn violate the U.S.-Mexico-Canada Agreement (USMCA), marking a key victory for American agricultural interests. The panel determined that Mexico’s ban on biotech corn, which has been a source of contention, was not scientifically justified and undermined an important economic market for U.S. corn exports. The ruling is expected to have far-reaching effects on trade between the two countries.

The panel’s decision gives Mexico until February 3, 2025, to comply with its directives. Although Mexico’s government has expressed disagreement with the ruling, it has pledged to respect the final decision. The dispute centers on a 2023 presidential decree issued by Mexico that prohibits the use of GM corn for human consumption, alongside additional measures aimed at phasing out biotech corn for animal feed and industrial uses.

The ban, which was set to take effect at the end of 2024, had raised alarm among U.S. farmers and exporters, particularly those involved in the yellow corn market. While Mexico imports minimal amounts of white corn—used primarily for tortillas and masa—it is the largest foreign buyer of U.S. yellow corn, which is predominantly used for animal feed. According to the U.S. Department of Agriculture, the U.S. exported $4.8 billion worth of corn to Mexico between January and October 2024, underscoring the significance of the trade relationship.

The U.S. filed the dispute with the trade panel under the USMCA, arguing that Mexico’s ban violated the trade agreement by restricting market access for American farmers. The ruling affirms the U.S. position that the ban lacked scientific grounding, and the panel found that Mexico’s actions would negatively impact the established trade between the two countries.

Verity Ulibarri, Chairwoman of the U.S. Grains Council, hailed the ruling as a critical win for U.S. farmers, noting that the dispute resolution mechanisms in the USMCA are essential to protect American agricultural interests. "U.S. corn farmers and exporters understood how devastating this ban could have been, so it’s only right that mechanisms are in place within a trade agreement like USMCA when something like this happens," she said.

Mexico’s ban on GM corn stemmed from concerns over human health risks and the potential contamination of native corn varieties. The country also included provisions to phase out the use of glyphosate, a herbicide widely used in U.S. agriculture. However, in February 2023, Mexico softened some of the restrictions, including pausing the ban on glyphosate and exploring alternatives.

Despite the ruling, some civil groups in both the U.S. and Mexico have criticized the panel's decision, arguing that it ignored scientific evidence and unfairly prioritized economic interests over health and environmental concerns.