CAMBRIDGE, MA., Dec 11 2023 – The U.S. government’s continuous dispute over Mexico’s policies to restrict the use of genetically modified (GM) corn is being seen as an example of exploiting trade agreements to hinder social programs in Mexico and other nations. This pattern has been observed for years, with the U.S. prioritizing the export of crops such as corn, soybeans, and wheat, resulting in depressed prices and an oversupply in the market. While this benefits agribusiness, farmers bear the brunt of low crop prices and high input costs due to corporate concentration.
According to data from the past four decades, U.S. farmers experienced sales losses in 33 out of 40 years, reflecting their struggles in a system that favors agribusiness interests. Subsidies provided by the government only partially alleviate their losses. This overproduction issue stems from a shift away from supply management policies, which were aimed at achieving a balance between supply and demand. As a result, the U.S. relies on international markets to sell excess agricultural products, often at prices below production costs, leading to the practice of agricultural dumping.
Under the United States-Mexico-Canada Agreement (USMCA), U.S. dairy exports to Mexico have driven down milk prices, directly affecting the Mexican government’s efforts to achieve self-sufficiency in this area. Despite Mexico’s open stance toward non-GM corn imports, the U.S. seeks to impose its industrialized agricultural regime on Mexico, undermining the country’s precautionary science and food sovereignty.
The USMCA grants Mexico the right to take precautionary measures based on science and transparent processes that are less trade-distorting. Mexico’s current actions to restrict GM corn in the tortilla chain align with this right. However, the U.S. government is using the USMCA to challenge Mexico’s policies, despite their minimal impact on U.S. exports.
This is not the first instance of the U.S. misusing trade agreements to undermine anti-hunger programs. Years ago, the U.S. filed a formal dispute against India over its national food security program, claiming that the guaranteed prices provided to Indian farmers violated trade agreements. The U.S. accused India of excessive subsidies, despite its own substantial support to its farmers. The program in India has been successful in reducing poverty and food insecurity.
Mexico’s defense of its policy on genetically modified corn is justified, considering its commitment to public health and the preservation of its corn diversity. It is essential for the arbitration panel to recognize the U.S.’s hypocrisy in attempting to apply USMCA rules to a policy that has minimal impact on its exports.
It is crucial to respect the sovereignty of nations and their right to prioritize the well-being of their citizens over skewed trade interests. Mexico and other countries must be allowed to protect their food sovereignty, advance public health measures, and create policies that benefit their local farmers and consumers.
In order to create a fair and just global trading system, it is imperative to address the misuse of trade agreements and promote policies that prioritize food sovereignty, sustainability, and the well-being of farmers worldwide. Only through such efforts can we begin to rectify the imbalances and inequities that exist in the current agricultural trade landscape.
