Mexico drops restrictions on genetically modified corn imports

Adds response from U.S. trade representative's office

MEXICO CITY, Feb 6 (Reuters) - Mexico has repealed import restrictions on genetically modified corn for human, livestock and industrial uses following a U.S. victory in a North America trade panel dispute.

Former President Andres Manuel Lopez Obrador first banned such imports then reversed course to ban only those destined for human consumption.

The U.S. has been a major exporter of genetically modified yellow corn to Mexico, mostly for livestock feed and industrial uses, and lodged a dispute under the USMCA North American trade accord over Mexico's move.

In December, a USMCA panel ruled that the Mexican government's limits violated the trade agreement.

Mexico's government published the repeal of its restrictions in its official gazette on Wednesday to comply with the decision.

Mexico, the birthplace of modern corn, prohibits commercial planting of genetically modified corn strains, arguing they will contaminate native strains of the grain.

President Claudia Sheinbaum told reporters Thursday that her government was considering adding such a prohibition to the constitution.

The U.S. welcomed the repeal. The Office of the United States Trade Representative (USTR) said in a statement the move invalidated a Mexican ban on the use of genetically modified corn in dough and tortillas, and an instruction to Mexican government agencies to gradually eliminate the use of genetically modified corn for other food uses and in animal feed.

"The United States will continue to monitor closely Mexico’s compliance with its USMCA commitments to ensure that Mexico’s agricultural biotechnology measures are based on science and provide U.S. corn growers the market access that Mexico agreed to provide in the USMCA," the USTR said in a statement.

Mexico is the largest export market for U.S. corn, with the country exporting $5.6 billion of corn to Mexico last year, according to the statement.