Daniel Kildee

10/02/2024 | Press release | Distributed by Public on 10/02/2024 08:21

Kildee Leads Bipartisan Effort to Support Michigan Farmers, Hold Mexico to USMCA Commitments

FLINT-Congressman Dan Kildee (MI-08), member of the House Ways and Means Committee Subcommittee on Trade, led a bipartisan letter urging U.S. Trade Representative Katherine Tai and U.S. Secretary of Agriculture Tom Vilsack to continue to engage with the newly elected President of Mexico, Claudia Sheinbaum, over Mexico's ban on American corn imports and other trade barriers.

In February 2023, Mexico issued a presidential decree banning the use of biotech corn in Mexico's dough and tortilla production with the long-term goal of banning biotech corn in all products for human consumption and animal feed. Since over 90% of the corn grown in the United States is of a genetically-modified (GM) varieties, this decree has created uncertainty for Michigan farmers and businesses. In August 2023, the United States requested a dispute settlement panel with Mexico under the United States-Mexico-Canada Agreement (USMCA), arguing that this decree is not based in science and may undermine the market access Mexico agreed to provide USMCA.

"It is our hope that you will work with President Sheinbaum and her administration to resolve this dispute and ensure continued access to Mexico's market for U.S. corn and biotechnology, which has long been proven safe for human consumption. The United States' high corn productivity is a testament to the innovations in seed technology over the last three decades, the hard work of our farmers, and the willingness of our agricultural community to adopt new products that enhance crop performance while maintaining strict safety standards," the letter reads in part.

The letter also requests a briefing from USTR on the status of the dispute with Mexico over the GM corn ban and preparations for the 2026 review of the United States-Mexico-Canada Agreement (USMCA).

Kildee led the letter with Rep. Randy Feenstra (IA-04) and 19 of their colleagues.

The full letteris below:

Dear Ambassador Tai and Secretary Vilsack,

Today, October 1, 2024, Claudia Sheinbaum will be sworn in as the President of Mexico for a six-year term following her election on June 2. With this change in leadership, we strongly urge you to engage with the incoming administration in Mexico to address ongoing trade disputes under the United States-Mexico-Canada Agreement (USMCA), including Mexico's ban on genetically modified (GM) corn.

The United States and Mexico have a deep and longstanding relationship, underscored by Mexico growing to be our largest trading partner in 2023. Last year, the total amount of imports and exports between the United States and Mexico was $798.9 billion - and this year, our trade with Mexico is expected to surpass $800 billion, which would mark only the second time in our history a country has passed that mark. Additionally, our farmers and agricultural industry greatly benefit from our trading relationship with Mexico. In 2023, Mexico imported $28.64 billion of U.S. agricultural commodities, making Mexico our second-largest agricultural export market.

Specifically, our biggest agricultural export to Mexico in 2023 was corn - with the total value exported registering at more than $5 billion - yet we remain concerned about Mexico's stance on U.S. GM corn. As you are aware, this current dispute began in February 2023 with a presidential decree that modified a 2020 decree, not based in science, that included an immediate prohibition on the use of biotech corn in Mexico's dough and tortilla production with the long-term goal of phasing out biotech corn in all products for human consumption and animal feed. With over 90% of the corn in the U.S. grown with GM varieties, this decree has created massive uncertainty for our farmers, businesses, and seed developers since the original decree in 2020.

As mentioned in the United States' official rebuttal submission in April 2024, "for decades, the international scientific community has regarded GE (genetically engineered) crops as safe for human consumption and safe for animal and plant life and health. Mexico was a part of this community." It is our hope that you will work with President Sheinbaum and her administration to resolve this dispute and ensure continued access to Mexico's market for U.S. corn and biotechnology, which has long been proven safe for human consumption. The United States' high corn productivity is a testament to the innovations in seed technology over the last three decades, the hard work of our farmers, and the willingness of our agricultural community to adopt new products that enhance crop performance while maintaining strict safety standards.

Additionally, with a review of USMCA due in 2026, it is imperative to develop a close working relationship with President Sheinbaum. We understand that Julio Berdegue Sacristan, Mexico's incoming Secretary of Agriculture and Rural Development, said the new administration will abandon their goal of reducing yellow corn imports, commonly used in animal feed. However, both the Decree and Mexico's regulation to ban GM corn (NOM-187) remain in place, and related legislation could advance in Mexico's legislature. We remain concerned with the effects of Mexico's policies to ban GM corn for both human consumption and animal feed since U.S. exporters face legal uncertainty which jeopardizes access to the market.

Therefore, we urge you to continue engaging with your Mexican counterparts to address current trade barriers, including Mexico's ban on GM corn, as President Sheinbaum takes office. Additionally, we request a briefing from the Office of the U.S. Trade Representative on the status of the GM corn dispute consultation with the Mexican government, any changes or developments you anticipate for our trading relationship under Mexico's new President-particularly as it relates to the USMCA review in 2026-and how you plan to work with the new administration to remove Mexico's ban on biotech corn. We appreciate your work on behalf of American farmers during this ongoing dispute and look forward to working together to resolve this issue.

Sincerely,

Daniel T. Kildee

Randy Feenstra (IA-04)

Elissa Slotkin (MI-07)

Angie Craig (MN-02)

Brad Finstad (MN-01)

James R. Baird (IN-04)

Mary E. Miller (IL-15)

Max L. Miller (OH-07)

Derrick Van Orden (WI-03)

Mark Alford (MO-04)

Mike Bost (IL-12)

Tracey Mann (KS-01)

Adrian Smith (NE-03)

Scott Fitzgerald (WI-05)

Zach Nunn (IA-03)

Darin LaHood (IL-16)

James Comer (KY-01)

Ashley Hinson (IA-02)

Nikki Budzinski (IL-13)

Mariannette Miller-Meeks (IA-01)

Dusty Johnson (SD-At Large)