Mexico Would Lose Panel on GM Corn: COPARMEX

Mexico’s Employers’ Confederation (COPARMEX) warned that President López Obrador’s government would lose the panel over the GMO corn dispute with the US under USMCA as there is no evidence that the crop is harmful to human health. 

On March 6, 2023, the US requested formal trade consultations with Mexico over limitations on GMO corn exports and other agricultural biotechnology products. The next day, during his morning conference on March, 7, 2023, President López Obrador stressed that the Mexican decree that prohibits the entry of GMO corn for human consumption does not violate USMCA. “No treaty in the world requires the purchase of substances or products that may be counterproductive to the health of the population,” López Obrador said. Furthermore, he pointed out that if no agreement was reached between the two countries, there would be a settlement panel. “It is a very important matter for us, it is the health of our people,” he added.

José Medina, President, COPARMEX said that if there is an international panel, Mexico will most probably lose, since there is no scientific evidence that speaks of the damage caused by transgenic corn on human health. “If Mexico loses the panel, the consequences would be huge. Since exports are the engine of our country, having tariffs (as a countermeasure against Mexico) would be very damaging to the national economy,” Medina pointed out. 

President López Obrador claimed that the possibility for negotiation is still open since there is a month to reach an understanding before the panel. He stated that an agreement is being reached to develop a joint analysis between COFEPRIS and a qualified US agency on the potential health damages of transgenic corn. "We want to know once and for all, what transgenic crops contain and if there are any health risks. This is positive for consumers in Mexico and the US," he added.

Recently, Chuck Grassey, US Republican Senator, urged US Trade Representative Katherine Tai to start a formal dispute against Mexico at the end of the technical consultation period. “There is only one option, and on April 7, that is after 30 days, I would expect you to file a formal dispute settlement. Are you going to do that?” he asked during a Senate Finance Committee hearing on the Biden administration’s trade agenda. Grassey added that a firm response from the USTR was needed to let Mexico know that it needs to change its policy on GM corn. Meanwhile, Tai said that she was not going to allow this problem to continue indefinitely. “We know that all the tools in USMCA are there for a reason,” she added.