WASHINGTON – After hearing directly from
Iowa farmers, Sens. Chuck Grassley (R-Iowa) and Joni Ernst (R-Iowa), both
members of the Agriculture Committee, are urging U.S. Trade Representative
(USTR) Katherine Tai to intervene in Mexico’s plan to end genetically-modified
corn imports. The country’s proposed ban would effectively phase out the import
of 90 percent of U.S. corn by January 2024. Currently, Iowa corn growers
export
16 million tons to Mexico each year.
In a
letter
to Ambassador Tai,
the Iowa senators
write: “Any interruption to [corn export] shipments will severely affect
our farmers and the state’s economy, and have dire economic consequences for
the entire Corn Belt. President Obrador’s decree is not only a non-starter for
America’s farmers, but it is also impossible to implement… Despite overtures to
the Mexican government for nearly two years, there is little indication from
the country’s leadership that it will adhere to its commitments under USMCA.
The time has come for the Office of the United States Trade Representative
(USTR) to intervene on this issue. I am respectfully calling on you to formally
request dispute settlement consultations under Article 31.4 of USMCA.”
In 2020, President Andrés Manuel López
Obrador announced Mexico would phase out genetically-modified corn – which includes
corn grown by Iowa farmers – and the use of herbicide glyphosate by 2024. In
October,
the sentiment was reaffirmed by Mexico’s Deputy Agriculture Minister Victor
Suarez who stated Mexico was on track to cut its imports of U.S. yellow corn in
half.
A
10-year forecast found the ban would cause the U.S. economy to lose $73.89 billion in
economic output, and Gross Domestic Product (GDP) would go down by $30.55
billion. In the first year of Mexico’s ban, U.S. corn growers and industry
partners would suffer $3.56 billion in losses, followed by a loss of $5.56
billion during the second year. This economic downturn would also lead to the
loss of 32,000 U.S. jobs.
“We must do everything possible to stop
this decree from being enacted,” said
Pete Brecht, Iowa Corn Exports and The Grain Trade Committee Chair. “Iowa
exports 630 million bushels of corn to Mexico every year and if the decree is
enacted, corn growers will feel the impact as will businesses across the
state.”
Read the full letter
here.
Earlier this year, Grassley
pressed
Ambassador Tai to address barriers to trade from the European Union and Mexico
during a hearing on the president’s 2022 Trade Policy Agenda.
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