Cape News

American farmers have achieved a significant victory in a trade dispute with Mexico over the latter's ban on U.S. corn imports. This outcome follows efforts by Ways and Means Republicans, who urged the Biden Administration to address what they considered unfair trade practices by Mexico.

The ruling was made by a United States-Mexico-Canada Agreement (USMCA) dispute settlement panel, which sided with American farmers against the Mexican government's ban on American-grown corn. Ways and Means Committee Chairman Jason Smith commented on this development: "When I met with President López Obrador last year, I made clear that Mexico must follow the rules and treat American farmers fairly – and now we have achieved a crucial victory for farmers who have suffered from Mexico’s failure to live up to its USMCA commitments in agriculture."

Smith emphasized the importance of continued pressure on compliance: "For many months, Congress put pressure on the Biden Administration to use all available tools to ensure compliance. I will work closely with the Trump Administration to make sure Mexico pays a steep price if it does not promptly come into compliance with USMCA rules."

While expressing satisfaction with Ambassador Katherine Tai's actions, Smith noted anticipation for more robust enforcement under President Trump: "While we are glad that Ambassador Tai made the right call challenging Mexico’s unscientific ban of American agricultural exports, we look forward to more speedy and decisive action under President Trump in his use of important enforcement mechanisms built into USMCA in order to defend Americans against foreign cheaters."

A timeline highlights key steps taken by U.S. officials:

- February 15, 2023: Chairman Smith and Trade Subcommittee Chairman write Ambassador Tai and U.S. Agriculture Secretary Tom Vilsack urging action.

- March 6, 2023: Ambassador Tai announces initial steps toward invoking a USMCA dispute settlement mechanism.

- March 13, 2023: A bipartisan congressional delegation meets with Mexican President Andrés Manuel López Obrador.

- April 16, 2023: Chairman Smith presses Ambassador Tai during a hearing.

- August 17, 2023: Ambassador Tai formally requests establishing a USMCA dispute settlement panel.