Mexico imposes 50% tariff on white corn imports as trade dispute with U.S. continues

The Mexican government announced on Friday a 50% tariff on white corn imports as the country seeks to boost national production amid a trade dispute with the United States and Canada. 

The measure was officially implemented Saturday after it was published in the government’s official gazette. It will be enforced until the end of the year. 

Earlier this year, the Mexican government attempted to control inflation by exempting white corn, a basic food source in the country, from tariffs.

However, the move did not generate a “significant impact on the decrease in prices in the national market, so it’s considered appropriate to eliminate it,” according to the decree. 

The new tariff could violate the U.S.-Mexico-Canada free trade agreement, straining an already complicated relationship after past trade disputes over genetically modified corn. 

Mexico is seeking to restrict GM white corn for human consumption, as well as GM yellow corn used for animal feed, over concerns that they could have negative health effects. 

However, the U.S. and Canada say that banning GM corn would harm trade in the region and violate the free trade agreement. 

“Canada shares the concerns of the U.S. that Mexico’s measures are not scientifically supported and have the potential to unnecessarily disrupt trade in the North American market,” Canada’s Ministry of Agriculture and Agri-Food said in a statement.

The U.S. and Canada requested a trade dispute panel, which formally opened on June 2 after talks with the Mexican government failed, to dispute Mexico’s proposed limits on GM corn. 

A panel of experts will have to review the complaint and study the measure’s impacts before releasing its findings. If Mexico is found to have violated the U.S.-Mexico-Canada free trade agreement, it would have to face sanctions.