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U.S. to Initiate Trade Dispute Settlement Panel with Mexico

08/06/2023

Following the unjustified proposed ban on importation of GM corn, the U.S. entered into negotiations with Mexico that imports corn to the value of $5 billion annually.  Mexico has consistently avoided any decision on relaxation of the ban and accordingly, on August 16th the U.S. will be eligible to initiate a dispute settlement panel in accordance with the USMCA. Officials in Mexico, including the Minister of Agriculture, Victor Suarez, are hard pressed to justify the edict issued by the President Andres Manuel Lopez Obrador.

 

Mexico maintains that GM corn is in some way deleterious to health but will not accept scientific evidence to the contrary as advanced by the U. S.  Faced with the reality of replacing U.S. corn, Mexico is attempting to increase domestic production.  Approximately one million metric tons of white corn will be purchased from farmers at an approximate price of $400 per ton representing unnecessary state support of a food commodity.

 

The effect of the ban set to take effect in 2024 in accordance with the Presidential edict, will result in Mexico becoming short of white corn that is consumed as a staple. The economic consequences to the population will be severe from this self-inflicted action stemming from a whim of the President supported by his immediate circle of advisors.