MEXICO CITY (Reuters) -Mexican President Andres Manuel Lopez Obrador said on Friday he would accept the decision of a trade panel requested by the United States to solve a spat over the Latin American country’s move to ban genetically modified, or GMO, corn imports.
The United States on Thursday escalated its objections to Mexico, requesting a dispute settlement panel to carry out negotiations under the North American trade pact.
The panel came after formal consultations failed to resolve divisions between the two trade partners over GMO corn, which is widely produced by U.S. farmers.
If the panel rules in favor of the United States and Mexico fails to comply with its directives, the U.S. Trade Representative (USTR) could ultimately win the right to impose tariffs on Mexican goods.
Mexico’s Economy Ministry has argued the country’s policies are consistent with trade obligations.
Nonetheless, Washington alleges that Mexico’s decree banning imports of GMO corn is not based on science and violates its commitments under the U.S.-Mexico-Canada Agreement on trade launched in 2020.
(Reporting by Valentine Hilaire and Raul Cortes Fernandez; Editing by Isabel Woodford and Jonathan Oatis)
Brought to you by www.srnnews.com