MEXICO CITY, Jun 2 (Reuters) – Mexico on Friday said it would refute US arguments over agri-biotech measures, including plans to limit the use of genetically modified (GM) corn, in talks over the settlement of trade disputes requested by Washington earlier in the day.
The consultation request comes as North American neighbors approach a full trade dispute under the US-Mexico-Canada Agreement (USMCA) over Mexico’s policy to limit the use of genetically modified corn it imports from the US
If consultations fail to resolve disagreements within 75 days, Washington may request a dispute resolution panel to decide the matter.
Mexico said it is committed to “constructive dialogue” about US concerns and to “reach a mutually satisfactory agreement”.
When asked if Canada would take similar action to the US, a Department of Commerce spokesman said Canada is “considering its next steps” and would be “guided by what is in the best interest of our farmers and the Canadian agricultural sector.” .
The United States requested formal trade talks in March over objections to Mexico’s plans to restrict imports of genetically modified corn and other biotech agricultural products. Those consultations have taken place, but have not led to a solution, according to senior officials of the office of the US trade representative.
Mexico’s agriculture ministry declined to comment, but the minister this week expressed confidence that the dispute with the US will not escalate to a dispute resolution panel.
The conflict comes amid other disagreements between the US and Mexico, particularly over energy, in which the US has argued that Mexico’s nationalist policies favor foreign companies.
Despite February changes to Mexico’s decree on genetically modified corn, the US said the Latin American country’s policy is not based on science and appears to conflict with its obligations under the USMCA.
The new decree removed a deadline for banning GM corn for animal feed and industrial use, by far the largest share of $5 billion in U.S. corn imports, but maintained a ban on GM corn used in dough or tortillas.
Mexico argued on Friday that the ban will not affect trade with the US, as Mexico produces more than enough white corn for tortillas.
A Mexican top executive said, prior to the request for consultations, that because Mexico does not formally prevent the sale of U.S. genetically modified corn, any dispute panel would likely find that little material damage has been done to U.S. business.
Mexican President Andres Manuel Lopez Obrador has also said genetically modified seeds could contaminate Mexico’s ancient indigenous varieties and has questioned their impact on human health.
The revised February decree calls for a phase-out and eventual ban of biotech corn, and this part of the measure itself is not science-based,” a senior USTR official said.
The consultations will also cover Mexico’s rejection of new biotech seeds for products such as soybeans, cotton and canola, US officials said.
Mexico argued on Friday that the decree “encourages Mexico to preserve planting with native seeds, which is done in accordance with USMCA environmental regulations.”
Some industry experts have expressed concern that the move could set a precedent for other countries, disrupting the global corn trade.
The National Corn Growers Association, which represents US farmers, praised the US move.
“Mexico’s actions, which are not based on sound science, have threatened the financial well-being of corn farmers and our country’s rural communities,” association president Tom Haag said in a statement.
Reporting by Cassandra Garrison; Additional reporting by Adriana Barrera, Kylie Madry and Dave Graham in Mexico City and Ismail Shakil in Ottawa; Edited by Leslie Adler and William Mallard