Corn dispute with Mexico escalates, Nebraska farmers push for accountability

WASHINGTON, DC (KHGI/KFXL) — Nebraska farmers have called on President Joe Biden to hold Mexico's feet to the fire. Now it escalates closer to an all-out trade dispute over something Nebraska produces better than anyone.

As we first reported last winter, Mexico's president issued a decree that could cut off American genetically modified corn. About 90 percent of American corn uses biotechnology.

Mexico signaled it may take biotech corn as animal feed but not white corn used in tortillas.

Now the Biden administration is taking formal action, moving closer to a dispute under the USMCA free trade deal with Mexico.

As farmers have been telling us, if this is not resolved, the results could be disastrous.

“We have this uncertainty what's going to happen with this market, what signal does this send to other markets around the world. We need to remain strong on this issue. We're asking the administration to hold the line and protect our market,” corn grower Andy Jobman told NTV in February.

The U.S. Trade Representative is requesting what's known as dispute settlement consultations. That's the next step to resolving the issue.

Nebraska farmers say it's especially important here. The state is the leading producing of white corn with much of that grown around Gothenburg.

Farmers have also raised concerns that if it's not addressed it opens the possibility other countries will put up trade barriers.

Senator Deb Fischer, a member of the Senate Agriculture Committee reacting, saying in part “Such a ban would be bad for family farmers, bad for Mexican consumers, and bad for the stability of our international trade agreements. I commend USTR’s actions today and the ongoing recognition that there can be zero compromise with Mexico here.”

Rep. Adrian Smith, chair of a trade subcommittee said this should have happened sooner.

“I’d be remiss if I didn’t take this opportunity to stress the continued importance of real, enforceable trade agreements. Because Congress and the Trump administration did the hard work of updating NAFTA – ushering in a new era of North American trade with USMCA – the Biden administration has these tools available to press for accountability and stand up for American producers. No ‘framework’ or ‘dialogue’ provides this authority, which is why no framework or dialogue could ever replace real trade agreements. I hope this serves as an inflection point for the Biden Administration,” he said.

Ag groups have been critical of the Biden administration’s handling of trade. The Corn Growers Association says Mexico's decree on biotech corn is not supported by science.