Dive Brief:
- Canada will join dispute proceedings over Mexico's ban on genetically modified corn in tortillas and dough, saying on Friday it agrees with the U.S. that the restrictions could unnecessarily disrupt North American trade.
- The U.S. requested a dispute panel earlier this month to determine whether Mexico's ban violates the U.S.-Mexico-Canada Agreement, which could open the door for punitive tariffs.
- Canada's trade and agriculture ministers said in a joint statement the country shares concerns with the U.S. "that the measures taken by Mexico are not scientifically supported."
Dive Insight:
Mexico announced plans in 2020 to ban all imports of biotech corn, though earlier this year it walked back a deadline to restrict its use in animal feed. The country maintains that genetically modified corn can adversely affect human health, and has convened a working group to study the issue.
The current policy primarily concerns white corn, which makes up around 5% of Mexico's corn imports and is used to make tortillas and dough. The prospect of an eventual ban on yellow corn, which is what's primarily produced in the U.S. and Canada, has growers concerned about their ability to access a major export market.
"Mexico’s policies on biotechnology are not based on sound science and are ultimately designed to block U.S. corn exports,” Ryan LeGrand, president and CEO of the U.S. Grains Council, said in a statement following the formation of a dispute panel. "We have had a long and productive relationship with Mexico. It is our number one market for U.S. corn, and we support this action because it will likely be the most expedient way to ensure that positive relationship continues."
Mexico will likely need to increase corn imports to meet increasing demand for starch and animal feed production, the U.S. Department of Agriculture forecasted earlier this summer. The country has taken measures to stabilize its own production, including the implementation of a temporary tariff on exports that expired at the end of June.
