Canada Joins the USMCA Dispute Over GMO Corn

Canada will participate as a third party in the USMCA dispute settlement panel on genetically modified (GMO) corn between Mexico and the US. Canadian representatives say they support the US position, as they believe Mexico's decision to ban GMO corn is not based on scientific research.

Canadian Trade Minister Mary Ng and Agriculture Minister Lawrence MacAulay said the country understands the US’ position in the GMO corn dispute, as Mexico is not complying with its scientific and risk analysis obligations as stipulated in USMCA. "Canada believes that these measures are not scientifically supported and have the potential to unnecessarily disrupt trade in the North American market," Ng and MacAulay stated.

Canada’s move comes after the US requested a dispute settlement panel under USMCA. This followed a 75-day formal consultation period, which failed to resolve the parties' differences. 

In February, Mexico modified the original GMO corn ban issued back in 2020. The updated decree allows the use of transgenic corn for animal feed and industrial use for the cosmetics, textiles and paper sectors. However, the document kept the restriction on GMO corn for human consumption, specifically in the use of flour for tortillas, which are an essential element of the Mexican diet.

Raquel Buenrostro, Minister of Economy, has defended Mexican corn policy, arguing that it is legitimate and stressing that the federal government is not willing to make a new modification to the decree. Moreover, she has qualified the US’ statements as unfounded. 

A few weeks ago, Mexico extended an invitation to the US to collaborate on scientific research regarding the impact of GMO corn on health, but the US declined this offer. Buenrostro stated that the US argues it already possesses FDA authorizations for the commercialization of this product, hence it is not willing to engage in more extensive research protocols. "This does not make sense, as a government genuinely concerned about public health would have no reservations about conducting a more complete investigation into the health implications of the grain in question," the minister said. 

In addition to GMO corn, Mexico has another ongoing arbitration issue in the energy sector. In July 2022, the US and Canada requested a consultation period under USMCA, as they believe that Mexico’s nationalist energy policies discriminate against foreign companies. However, Buenrostro noted that the countries are now working on an agreement to settle their differences without resorting to a settlement panel.