MEXICO CITY, June 2 (Reuters) – Mexico mentioned on Friday it might counter U.S. arguments over agriculture biotech measures, together with plans to restrict its use of genetically modified (GM) corn, in commerce dispute settlement consultations requested by Washington earlier within the day.
The session request comes because the North American neighbors inch towards a full-blown commerce dispute beneath the U.S.-Mexico-Canada Settlement (USMCA) over Mexico’s insurance policies to restrict the usage of GM corn, which it imports from the U.S.
If the consultations fail to resolve disagreements inside 75 days, Washington can request a dispute settlement panel to determine the case.
Mexico mentioned it was dedicated to “constructive dialogue” relating to U.S. considerations and to “attain a mutually passable settlement.”
Requested if Canada would take comparable motion to the U.S., a spokesperson for the Commerce Ministry mentioned Canada is “contemplating its subsequent steps” and can be “guided by what’s in the most effective curiosity of our farmers and the Canadian agriculture sector.”
America requested formal commerce consultations in March over objections to Mexico’s plans to restrict imports of GM corn and different agricultural biotechnology merchandise. These consultations came about, however didn’t resolve the matter, senior officers of the U.S. Commerce Consultant’s workplace mentioned.
Mexico’s agriculture ministry declined to remark, however the minister this week expressed confidence that the dispute with the U.S. wouldn’t escalate to a dispute settlement panel.
The battle comes amid different disagreements between the U.S. and Mexico, most notably over power wherein the U.S. has argued that Mexico’s nationalist coverage prejudices international firms.
Regardless of February adjustments to Mexico’s decree on GM corn, the U.S. mentioned the Latin American nation’s insurance policies aren’t primarily based on science and seem inconsistent with its dedication beneath the USMCA.
The brand new decree eradicated a deadline to ban GM corn for animal feed and industrial use, by far the majority of its $5 billion value of U.S. corn imports, however maintained a ban on GM corn utilized in dough or tortillas.
Mexico argued on Friday the ban is not going to have an effect on commerce with the U.S., as Mexico produces greater than sufficient white corn used for tortillas.
A senior Mexican govt, talking earlier than consultations have been requested, mentioned that as a result of Mexico just isn’t formally stopping sale of U.S. GM corn, any dispute panel would probably discover little materials injury had been executed to U.S. enterprise.
Mexican President Andres Manuel Lopez Obrador has additionally mentioned GM seeds can contaminate Mexico’s age-old native varieties and has questioned their affect on human well being.
February’s revised “decree does name for a gradual substitution and eventual banning of biotech corn, and this a part of the measure itself just isn’t science-based,” mentioned a senior USTR official.
The consultations may also handle Mexico’s rejection of latest biotech seeds for merchandise like soybeans, cotton and canola, U.S. officers mentioned.
Mexico argued on Friday that the decree “encourages Mexico to protect planting with native seeds, which is completed in compliance with the USMCA’s environmental laws.”
Some sector consultants have expressed concern that the transfer might set a precedent amongst different nations, which might disrupt the worldwide corn commerce.
The Nationwide Corn Growers Affiliation, which represents U.S. farmers, praised the U.S.’ transfer.
“Mexico’s actions, which aren’t primarily based on sound science, have threatened the monetary wellbeing of corn growers and our nation’s rural communities,” affiliation President Tom Haag mentioned in an announcement.
Reporting by Cassandra Garrison; Additonal reporting by Adriana Barrera, Kylie Madry and Dave Graham in Mexico Metropolis and Ismail Shakil in Ottawa; Enhancing by Leslie Adler and William Mallard
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