Mexico to make last-ditch effort to solve US corn dispute

Mexico has been importing US GM feed corn for years, buying about USD 3 billion worth annually, and is the single biggest export market for US corn.Mexico hopes to stave off a full-fledged trade complaint under the agreement on that issue as well as a dispute over Mexicos energy sector.

Mexico's foreign secretary has announced he will travel to Washington, DC, on Friday in a last-ditch effort to resolve a dispute over imports of US corn before a scheduled visit next month by US President Joe Biden. Foreign Secretary Marcelo Ebrard said on Monday that he will travel to the US capital with other Mexican officials to try to find "points of agreement on genetically modified corn and other issues." The leaders of Canada, Mexico and the United States are scheduled to meet in Mexico City on January 9. Mexico sparked the dispute when it announced plans to ban imports of GM corn for human consumption and perhaps eventually for animal feed as well.

Mexico cites health concerns, but such a trade restriction could violate the US-Mexico-Canada free trade agreement. Mexico has been importing US GM feed corn for years, buying about USD 3 billion worth annually, and is the single biggest export market for US corn.

Mexico hopes to stave off a full-fledged trade complaint under the agreement on that issue as well as a dispute over Mexico's energy sector. The United States says Mexico is unfairly favouring its state-owned electricity and oil companies over American competitors and clean-energy suppliers. Canada also has joined in that complaint.

The US initially requested talks in July, but they have so far not yielded any solution. The United States could demand an arbitration panel, and the dispute could end in trade sanctions against Mexico.(AP) RUP