Last year, the USTR initiated consultations with Mexico under the agreement, alleging that Mexico’s energy policies disproportionately benefit its state-run electric utility, Comisión Federal de Electricidad, and oil company, Petróleos Mexicanos, at the expense of U.S. companies. Canada has also raised concerns about Mexico’s energy policies.
Despite the deadline for requesting a USMCA panel passing, consultations between the two countries have continued. While some progress has been made, Tai acknowledges that the U.S.’s concerns remain substantial and deep-rooted. Consequently, she plans to address the matter with Mexico’s Economy Minister, Raquel Buenrostro, during the ongoing USMCA free trade commission meeting in Cancun.
Tai warns that if additional progress is not achieved, the next course of action would be to request a dispute-settlement panel. Such a panel ruling in favor of the U.S. could potentially lead to retaliatory measures, such as tariffs on Mexican exports.
The discussions between the U.S. and Mexico regarding energy policies are pivotal in maintaining a fair and balanced trade relationship. Both countries need to find common ground and address these concerns to ensure a successful outcome under the USMCA agreement.
Trade Talks in Cancun: Mexico’s Ban on Genetically Modified Corn
Introduction
In a crucial meeting held in Cancun, the United States and Canada came together to address Mexico’s proposed ban on imports of genetically modified corn. The ban, which could have a significant impact on the billion-dollar U.S. corn exports to Mexico, has raised concerns among both nations. Canadian Trade Minister Mary Ng joined the discussion to contribute as a third party.
The U.S. Stance
U.S. Trade Representative Katherine Tai clarified that the recent decision by Mexico to impose a 50% tariff on genetically modified white corn imports would not affect the United States due to the USMCA trade pact. However, she emphasized the underlying issue of restricting trade for biotechnology agricultural products, expressing the commitment to safeguard the safety of their agricultural products that have fostered robust trade among the three countries for several decades.
Mexico’s Justification
Mexico maintains that its planned ban on genetically modified corn is primarily aimed at protecting its diverse native varieties of corn and ensuring human health. As a nation largely self-sufficient in white corn production, which holds immense importance in the making of tortillas, Mexico seeks to preserve its traditional agriculture practices.
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