The U.S. has again advanced a dispute over Mexico’s policies on agricultural biotechnology products that could lead to trade retaliation measures.
Earlier this summer the U.S. requested formal dispute settlement consultations under the U.S.-Mexico-Canada Agreement regarding measures set out in a February 2023 Mexican decree, specifically a ban on the use of genetically-engineered corn in tortillas or dough and instructions to Mexican government agencies to gradually substitute (i.e., ban) the use of such corn in all products for human consumption and animal feed.
Having failed to reach an agreement during those consultations, the U.S. announced Aug. 17 that it is establishing a USMCA dispute settlement panel to hear its arguments. If this process (likely to be completed in mid-2024) results in a ruling in favor of the U.S., Mexico would be urged to revise the policies at issue. If it declines, the U.S. would be authorized to impose retaliatory measures such as increased tariffs on imports from Mexico.
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