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

Q1 – What are the next steps in the Canada-United States-Mexico (CUSMA) dispute on this issue? Q2 – Why is it a concern that Canada doesn’t export corn to Mexico? Q3 – Is Canada concerned about the health impacts of biotechnology corn and glyphosate on human health or the environment?

R.1 - The CUSMA hearing took place from June 26-27, 2024, in Mexico City. As a third party in this dispute, Canada’s role was limited to providing an oral statement and responding to questions posed by the panel. The panel’s report is expected to be released later this fall. R.2 - While Canada does not export corn to Mexico, 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. R.3 - 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.

Canada is a third Party in this CUSMA dispute between the U.S. and Mexico, which concerns two Mexican measures relating to genetically modified (GM) corn.

On February 13, 2023, Mexico published a Presidential Decree, 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 under the CUSMA sanitary and phytosanitary measures (SPS) Chapter (March 2023) to better understand Mexico’s measures. The United States requested formal dispute settlement consultations (June and August 2023) and requested the establishment of a CUSMA dispute settlement panel (August 2023) in which Canada is participating as a third Party.

The U.S. is challenging two measures: 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.

Like the U.S., Canada is a major producer and exporter of agricultural products, including biotechnology products (e.g., canola seed and oil), to the U.S. and Mexico. In 2022, Canada’s agri-food exports (excluding seafood) to Mexico totaled over $2.9 billion, with grains and oilseeds comprising the top three commodities: canola seeds ($1.2B), canola oil ($435M) and wheat ($252.6M).

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

• Like the United States, Canada is concerned with Mexico’s approach to genetically engineered corn.

• Mexico’s measures are not scientifically supported and could unnecessarily disrupt trade.

• This is why Canada is participating as a third party in the panel proceedings requested by the United States.

• Biotechnology has proven to be safe for decades and allows farmers to use innovation to support food security and sustainability.