A key corn-related trade victory for the US is being applauded by grain producers on this side of the border as well.
The Canada Grains Council (CGC), the national organization representing the interests of the Canadian grain, oilseed, pulse and special crop sectors, said in a statement Monday that “predictable and science-based trade rules are the foundation of a stable and secure food supply across North America.”
The trade dispute was triggered by Mexico’s 2023 presidential decree which banned the use of GM corn in dough and tortillas and proposed a phased reduction of GM corn in animal feed and other food uses. Supported by Canada as a third party in the dispute, the US subsequently challenged the decree under the terms of the US-Mexico-Canada-Agreement (USMCA) trade pact.
A USMCA dispute panel last month concluded that measures taken by Mexico were inconsistent several provisions in the trade agreement and recommended Mexico bring its measures into conformity with obligations of the agreement.
The case was especially important for the US, given that it is the primary supplier of corn to Mexico, accounting for more than 95% of the country’s annual imports. In 2023, US corn exports to Mexico were valued at about $3.5 billion.
Canada does not typically export much, if any, corn to Mexico but it is an important market for Canadian canola and canola products with exports totaling approximately $1 billion in 2023.
“For Canadian farmers and grain exporters, reliable access to international markets can mean the difference between success and failure,” said Krista Thomas, Vice-President of Trade Policy, Seed Innovation for the CGC. “When major trading partners like Mexico veer away from science-based rules, it creates uncertainty for farmers who rely on GM crops to run their farms efficiently, stay profitable, and take care of the environment.”
Added Chris Davison, president & CEO of the Canola Council of Canada: “We are pleased to see that the USMCA dispute panel has reaffirmed the commitment to science- and evidence-based policies that are required to help ensure predictable trade and market access in the North American market.”
The USMCA panel issued its final report to the parties involved in the dispute on Dec. 20. Under USMCA rules, Mexico has 45 days from the date of the final report to comply with the panel’s findings.
