A U.S.-Mexico-Canada Agreement dispute resolution panel ruled Friday that Mexico’s ban on genetically modified corn is not founded in science, paving the way for U.S. retaliation unless the restriction is lifted.
Mexico’s former President Andrés Manuel López Obrador in 2023 banned genetically-engineered corn for use in dough and tortillas and outlined plans to phase it out of animal feed and industrial uses, ostensibly over public health concerns.
The Office of the U.S. Trade Representative responded by requesting a USMCA dispute panel last year, arguing that the measure was a disguised effort to restrict U.S. corn imports to one of the country’s top export markets for GE yellow corn and a violation of Mexico’s trade commitments.
“Mexico’s measures ran counter to decades’ worth of evidence demonstrating the safety of agricultural biotechnology,” Agriculture Secretary Tom Vilsack said in a statement on Friday. Accordingly, Vilsack said, the decision “ensures that U.S. producers and exporters will continue to have full and fair access to the Mexican market, and is a victory for fair, open, and science- and rules-based trade.”
The panel sided with the U.S. on all seven of the legal claims, according to the final report, finding that the ban was not consistent with international standards or scientific principles and was applied for reasons beyond protecting human or animal health.
Further, the panel determined that the ban is not justified under a USMCA provision that provides a carveout to protect the rights of indigenous peoples, after some proponents of the ban argued it protects the country’s corn biodiversity and the agricultural practices of indigenous people.
“The panel’s ruling reaffirms the United States’ longstanding concerns about Mexico’s biotechnology policies and their detrimental impact on U.S. agricultural exports,” U.S. Trade Representative Katherine Tai said in a statement on the ruling. “We look forward to continuing our collaboration with the Mexican government to ensure a level playing field and provide access to safe, affordable, and sustainable agricultural products on both sides of the border.”
Mexico has 45 days to comply with the panel’s ruling, or the U.S. can legally impose retaliatory tariffs to offset any lost U.S. exports.
The U.S. corn industry was quick to celebrate the ruling.
Cut through the clutter! We deliver the news you need to stay informed about farm, food and rural issues. Sign up for a FREE month of Agri-Pulse here.
“This is an incredible development for the nation’s corn growers and rural communities,” National Corn Growers Association President Kenneth Hartman Jr. said in a statement.
“Iowa’s farmers rely heavily on trade and corn exports to Mexico,” said Iowa Corn Growers Association President Stu Swanson, adding that “Mexico is a key market for corn in all forms and it has been an important push to remove barriers to allow trade.”
Andy Jobman, chairman of the Nebraska Corn Growers Association, said the decision "shows the real value of corn grower advocacy and what we can accomplish when we work together.”
Andy LaVigne, president and CEO of the American Seed Trade Association, also lauded the decision.
“Over 90% of U.S. corn production relies on biotech seeds, because these technologies are safe, they improve farmers’ yields, and they help us grow crops that are better for the environment,” he said in a statement, adding that the ban had created “massive uncertainty” for farmers.
Rep. Adrian Smith, R-Neb., who chairs the Ways and Means Trade Subcommittee, called the decision “a victory for American agriculture producers and the future of rules-based, science-driven trade.”
While Smith complained that the process could have been accelerated with more pressure from President Joe Biden, he celebrated that the “integrity of USMCA has been upheld.”
“With the USMCA review coming in 2026, it is essential the U.S. continues to stand up for American industry and hold our trade partners to their commitments,” Smith added.
John Torres, senior director of federal government relations at the Biotechnology Innovation Organization, told Agri-Pulse that more was at stake in the case than U.S. agriculture exports.
Had Mexico’s ban gone unchallenged, Torres said, it could have incited similar policies elsewhere, chilling “innovation at a time when we need more innovation, and we need the power of biology to solve some of our society's greatest challenges around food.”
If there are concerns around “protecting the cultural nature of food, let's find solutions that do that, that are science based, risk appropriate,” Torres added, and are USMCA and World Trade Organization compliant.
The Mexican government said in a statement Friday that it disagrees with the panel's findings. The Ministries of Economy and Agriculture reiterated that the measures "align with principles safeguarding public health and the rights of Indigenous peoples."
"Nevertheless, Mexico will respect the Panel’s determination, recognizing that the USMCA dispute resolution system is a cornerstone of the agreement," the statement added.
