Question Period Note: Canada’s participation as a third Party in the Dispute Settlement Proceedings under the Canada-United States-Mexico Agreement Regarding the Use of Genetically Engineered Corn

Q1 – When did Canada notify its intent to participate in the dispute settlement panel established by the U.S. against Mexico and what are the next steps? Q2 – If asked why this is a concern when Canada doesn’t export corn to Mexico? Q3 – If asked whether Canada is concerned about the health impacts of biotechnology corn and glyphosate on human health or the environment?

R1 - Canada notified its intent to participate as a third party in the dispute settlement panel established by the United States against Mexico on August 25th, 2023.

In terms of next steps, panel selections will be made over the coming weeks and it is expected that the U.S. will make its first submission mid to late September. R2 - Canada has systemic concerns with the approach taken by Mexico. Mexico’s departure from internationally accepted risk assessment practices creates misalignment of trade regulations amongst North American countries and sets a worrisome precedent, given our highly integrated supply chains. R3 - Biotechnology crops have been commercialized globally for over 25 years – Health Canada has evaluated the safety of foods derived from over 140 biotech plant varieties. In all cases, foods derived from these plant varieties were found to be safe for food use.

Glyphosate has been found unlikely to pose a carcinogenic risk to humans by Codex Alimentarius, the international reference body on food safety, as well as by a number of national authorities around the world.

Our farmers’ sustainability and competitiveness depend upon access to plant science innovations to grow their crops and predictable, rules-based trade to sell their crops. Canada’s policies provide producers with the tools that can help them address climate and food security challenges.

On August 25th, 2023, Canada announced its participation as a third party observer in the dispute settlement panel the U.S. established (August 17th) against Mexico to examine Mexico’s measures relating to genetically modified corn and products of biotechnology.

The establishment of a panel follows two dispute settlement consultation meetings which took place on June 29, 2023 (Mexico City) and August 14, 2023, (virtual). Canada participated in both as a third-party observer.

The U.S. is citing two elements: Mexico’s ban on GE corn imports for tortilla and dough production and Mexico’s instruction to gradually substitute GE corn used for animal feed and other human consumption.

The U.S. had not included Mexico’s rejections of genetically modified event authorizations at this time, but notified that it will continue to evaluate and reserves the right to request a panel on those measures in the future. The U.S. is also not including the restrictions on glyphosate within the scope of the dispute panel.

Mexico initially published the Presidential Decree on December 31, 2020 (“the 2020 Decree”) that called for a phase-out of the use of the pesticide glyphosate and genetically modified (GM) corn for human consumption by January 31, 2024. In the 2020 Decree, Mexico’s stated objective was to protect the environment and human health.

Over the course of 2021 and 2022, U.S. and Canadian senior government raised concerns with the measures in the original decree through CUSMA mechanisms as well as bilateral channels.

On February 13th, 2023, Mexico published a new Presidential Decree, replacing the original Decree, reducing the scope of the measures, yet imposing immediate restrictions on genetically engineered (GE) corn for tortilla production and leaving the door open to a gradual substitution of all GE corn. This prompted the U.S. and Canada to request technical consultations with the Government of Mexico under the Sanitary and Phytosanitary (SPS) Measures Chapter of the CUSMA. These SPS technical consultations took place on March 30, 2023 (U.S.-Mexico) and on March 31, 2023 (Canada-Mexico), in Mexico City.

Like the U.S., Canada is a major producer and exporter of agricultural products, including those that are products of biotechnology, to the U.S. and Mexico.

Canada’s agri-food exports (excluding seafood) to Mexico in 2022 was over $2.9 billion, with grains and oilseeds comprising the top three commodities: canola seeds ($1.2B), canola oil ($435M) and wheat ($252.6M).

When a key trading partner such as Mexico does not authorize biotechnology applications for Canadian agricultural exports, this creates an asymmetry in North American regulatory conditions that can lead to trade disruptions.

Canada also has an important systemic interest in ensuring the correct interpretation of the SPS obligations of CUSMA, namely that SPS measures are based on scientific principles and evidence, international standards, guidelines, and recommendations or appropriate risk assessments.

• Canada continues to advocate for science and rules-based decisions that enable and facilitate trade.

• Like the United States, Canada is concerned with the approach Mexico is taking with respect to biotechnology products .

• Mexico’s measures are not scientifically supported and have the potential to unnecessarily disrupt North American trade.

• This is why Canada is participating as a third party observer in the dispute settlement panel launched by the United States.

• Canada stands by its producers and the importance of ensuring the sector’s competitiveness abroad and consumers’ access to safe and affordable food and agricultural products.

• Biotechnology has proven to be safe for decades and allows farmers to use innovation to support food security and sustainability, to face climate change challenges, as well as increase farm productivity and support farmers’ livelihoods.