Mexico and United States: unresolved dispute over yellow corn

In a recent commercial transaction, American exporters have sold a total of 133,000 tons of corn to Mexico, one of the main buyers of this cereal from the United States, as reported by the United States Department of Agriculture (USDA). These figures refer to an agreement for the delivery of corn during the 2024/2025 campaign, which demonstrates the continuity in the commercial relations between both countries in this sector. Mexico positions itself as a key importer of genetically modified yellow corn from the United States, with an amount close to 6 billion dollars in annual acquisitions. This trade exchange has been a fundamental part of the economic dynamics between both nations and has contributed to the supply of inputs for food production in Mexico. Despite the importance of these transactions, the political landscape in Mexico has undergone changes regarding policies related to the production and consumption of yellow corn. The new Mexican government has expressed its decision to abandon the pursuit of self-sufficiency in the production of this grain, choosing to maintain imports as part of its food and economic strategy. In parallel to these decisions, Mexico and the United States are embroiled in a commercial dispute regarding corn trade, which is being evaluated in a dispute settlement panel of the United States-Mexico-Canada Agreement (USMCA). It is expected that this controversy will be resolved in the last quarter of the year, given the differences that have arisen following a decree issued in 2023 by Mexico. This decree prohibits the use of genetically modified yellow corn for "human consumption," restricting its application in products such as flour and dough for tortillas, which are fundamental elements in the Mexican diet. This measure has generated tensions, as the United States argues that this prohibition lacks scientific basis and violates the commitments established in the USMCA, while Mexico maintains that it does not affect corn imports. It is important to highlight that the Mexican decree allows the use of genetically modified yellow corn as feed for livestock and for industrial purposes, which has allowed the flow of imports of this grain from the United States to Mexico to be maintained, especially in the livestock sector and industry. This flexibility in the use of genetically modified yellow corn has been key to maintaining commercial cooperation between both nations, despite the differences that have arisen regarding its direct consumption. In this context, the complexity of the commercial relations between Mexico and the United States in the corn sector is evident, where economic, political, and food sovereignty interests intertwine. The resolution of this dispute, expected by the end of the year, will be crucial in defining the course of this commercial exchange and in maintaining stability in a market that has been fundamental for both economies.