Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: US wins multibillion-dollar cross-border corn dispute with Mexico; China-based carrier launches new ship for Mexico trade route; Volkswagen moves Golf vehicle manufacturing to Mexico; and Parts Town opens Phoenix area distribution center.
US wins multibillion-dollar cross-border corn dispute with Mexico
A five-year battle over Mexico’s ban on imports of genetically modified (GM) corn grown in the U.S. ended after a panel ruled the ban violated the U.S.-Mexico-Canada Agreement (USMCA).
The USMCA panel agreed with the U.S. on all seven legal claims, issuing its finding on Dec. 20 that Mexico’s GM corn ban is not based on science and prohibits market access that Mexico agreed to provide as part of the trade agreement.
“The panel’s ruling reaffirms the United States’ longstanding concerns about Mexico’s biotechnology policies and their detrimental impact on U.S. agricultural exports,” U.S. Trade Representative Katherine Tai said in a news release.
Under USMCA rules, Mexico has 45 days from the date of the final report to comply with the panel’s findings.
American Farm Bureau President Zippy Duvall said the panel’s decision will help U.S. farmers.
“If left in place, Mexico’s restrictions would have impacted the corn supply chain, stifled innovation, hurt trade and opened the door for other countries to pursue similar restrictive measures,” Duvall said in a statement.
Mexico’s plan to prohibit the importation of GM corn began in 2020, when then-President Andres Manuel Lopez Obrador said he would eliminate the use of the herbicide glyphosate and genetically modified corn in the country. (Photo: Shutterstock)
Mexico’s plan to prohibit the importation of GM corn began in 2020, when then-President Andres Manuel Lopez Obrador said he would eliminate the use of the herbicide glyphosate and GM corn in the country.
Lopez Obrador was also pushing for Mexico to achieve self-sufficiency in production of white corn. In June 2023, Mexico began imposing a 50% tariff on white corn exports entering the country from the U.S.
The United States requested the dispute settlement panel in August 2023, bringing six legal claims under the USMCA’s sanitary and phytosanitary measures chapter and one legal claim under the chapter on national treatment and market access for goods.
The USMCA panel’s ruling comes at a time when Mexico is importing increasing amounts of corn and other agricultural goods from the U.S. Mexico is the largest importer of U.S. corn, both yellow and white.
From January through October, the U.S. exported $4.8 billion of corn to Mexico. In 2023, Mexico imported a total of $5.3 billion worth of U.S. corn.
Mexico was the No. 1 export market for U.S. agricultural producers in 2024. The market grew 7% year over year to $30 billion compared to 2023, according to the U.S. Department of Agriculture.
Canada was the No. 2 market for U.S. agricultural goods at $29 billion, followed by China at $27.5 billion.
The majority of U.S. corn is produced in states such as Iowa, Nebraska and Illinois, and shipped by rail, truck and barge, according to the USDA. The bulk of U.S. corn exports to Mexico are shipped either from the Port of New Orleans via container ship or by truck from the port of entry in Laredo, Texas.
As of Jan. 1, truckload demand in Laredo was at 0.52% of the total freight market in the U.S. Trucking capacity demand in Laredo is slightly lower than the same period in 2024 but higher than 2023.
China-based carrier launches new ship for Mexico trade route
SAIC Anji Logistics has launched the Anji Prestige, which will be used to transport finished vehicles to Mexico.
The vessel, which measures 656 feet and is 13 stories tall, has the capacity to haul 7,800 vehicles. It is reportedly the largest liquefied natural gas-powered roll-on/roll-off ship in the world.
China-based SAIC Anji Logistics recently launched the Anji Prestige, which will be used to transport finished vehicles to Mexico. (Photo: SAIC Motor)
SAIC Anji Logistics is the automotive shipping subsidiary of China state-owned car maker SAIC Motor, which has joint ventures with Volkswagen and General Motors. SAIC Motor does not currently sell vehicles in the U.S.
SAIC Anji Logistics currently operates 33 vessels, including 13 ships used for international trade. The company has established eight international routes that include Southeast Asia, Mexico, South America, Europe and Oceania.
In 2023, SAIC Motor launched a new shipping route linking China’s Port of Ningde and Mexico’s Port of Lazaro Cardenas, carrying SAIC’s MG brand cars for exports.
Volkswagen moves Golf vehicle manufacturing to Mexico
Volkswagen is moving production of its Golf hatchback from Germany to its plant in Puebla, Mexico, according to The Associated Press.
The move is part of a companywide restructuring plant that will see the automaker eliminate 35,000 jobs in Germany by 2030.
The deal is aimed at enabling the carmaker to manage a drop in demand in Europe, along with higher raw material costs and increasing competition from Chinese automakers. Volkswagen did not provide a timeline for the Golf’s production move to Puebla.
Wolfsburg, Germany-based Volkswagen builds passenger and commercial vehicles, motorcycles, engines and turbomachinery.
Volkswagen’s plant in Puebla employs 6,100 assembly workers. In 2023, the Puebla factory produced 349,227 vehicles, with 67% of the units exported for sale in the U.S. market.
Parts Town opens Phoenix area distribution center
Parts Town has launched a 420,000-square-foot distribution center in Glendale, Arizona.
The facility, about 10 miles west of downtown Phoenix, features automation and robotics solutions to enhance speed of delivery, according to a news release.
The distribution center employs about 100 workers and will be focused on growth in the food service parts distribution market.
Parts Town is a distributor of original equipment manufacturing food service equipment parts, residential appliance parts, HVAC parts, consumer electronic parts and more.
Addison, Illinois-based Parts Town is a subsidiary of Parts Town Unlimited, which has 50 unique brands and more than 5,300 team members worldwide.
The post Borderlands Mexico: US wins multibillion-dollar corn dispute with Mexico appeared first on FreightWaves.
