Katherine Tai Wakes Up on GMO Corn Protectionism

Trade protectionism is on the rise around the world, and that includes the Americas, once a leader in expanding trade. The latest example involves Mexico and the U.S. Trade Representative’s reluctance to enforce trade agreements.

Mexico has had a wave of new manufacturing investment as a supplier to the U.S. and Canada since Nafta became law in 1994. But now President Andrés Manuel López Obrador wants Mexico to dishonor its commitments in agriculture and energy under the renegotiated U.S.-Mexico-Canada Agreement, or USMCA. On Thursday the U.S. finally called him on it.

Mr. López Obrador wants to phase out the use of genetically modified yellow corn in Mexico. The ban would be a major blow to U.S. growers, who use GMO seed and for whom Mexico is the second largest export market. It would also harm Mexican livestock producers, who depend on U.S. corn, and make animal protein more expensive for Mexicans.

U.S. agriculture secretary Tom Vilsack said in September that the U.S. had been trying to “persuade” Mexico that a ban would be “catastrophic.” But in February AMLO repeated his intention to ban GMO corn imports. In March the U.S. asked for consultations.

Those talks went nowhere, and the two sides have gone back and forth with competing offers seeking a compromise. But Mexico keeps imagining that GMO corn is some kind of health threat despite decades of safe use. Under pressure from U.S. farmers, the U.S. trade rep said Thursday it is “establishing a dispute settlement panel under” the USMCA over GMO corn. A ruling will take months and if Mexico loses it will have to modify its decree or be subject to tariff retaliation.

The U.S. decision to confront AMLO’s assault on free trade is long overdue. With presidential elections set for June 2024, AMLO’s ban is an attempt to feed his left-wing base, but the price will be paid later by North American farmers and Mexican consumers.

AMLO is also indulging in energy protectionism. But it’s been more than a year since the U.S. sought dispute settlement consultations on Mexican policies that harm U.S. investors. These include revoking the ability of U.S. energy companies to operate in Mexico, in clear violation of the trade pact. Yet U.S. trade rep Katherine Tai still hasn’t sought a dispute-settlement panel. What does Ms. Tai do all day?

Protectionism spreads when there’s no trade leadership, especially from the U.S. Producers suffer, prices rise, and consumers pay.