Mexico’s proposed restrictions on genetically modified corn breaks its commitments under the U.S.-Mexico-Canada Agreement, the Office of the U.S. Trade Representative (USTR) said following a meeting with Mexican government officials.

Doug McKalip, chief ag negotiator for USTR, and Alexis Taylor, U.S. Department of Agriculture (USDA) undersecretary for trade and foreign agricultural affairs, met this week with Roberto Velasco Álvarez, chief officer for North America in Mexico’s Foreign Affairs Department.

The latest proposal from Mexico fell short, according to USTR and USDA officials.

The proposals “are not sufficient and Mexico’s proposed approach, which is not grounded in science, still threatens to disrupt billions of dollars in bilateral agricultural trade, cause serious economic harm to U.S. farmers and Mexican livestock producers, and stifle important innovations needed to help producers respond to pressing climate and food security challenges,” a statement from USTR and USDA said.

The decree was set to ban genetically modified corn imports beginning January 2024, but Mexican government officials made a proposal to delay the ban for a year. They also proposed exempting imports of feed corn from restrictions, allowing U.S. white corn to enter but still prevent it from being used for food products.

In addition to genetically modified corn cultivation, the decree proposes to phase out of the use of glyphosate by 2024, adding glyphosate will not be used in any government-sponsored program during the transition period.

The ban is expected to lead to significant economic ramifications for both the U.S. and Mexican economies, resulting in billions of dollars in losses for U.S. farmers and higher food prices for consumers in Mexico.

The meeting left U.S. officials unsatisfied.

“We appreciate our Mexican counterparts’ time and dedication in trying to hammer out a solution. We made it clear today that if this issue is not resolved, we will consider all options, including taking formal steps to enforce our rights under the U.S.-Mexico-Canada Agreement,” they said.