On Thursday, Bloomberg news reported that the United States is about to escalate its claim that the ban on genetically modified corn which Mexico implemented is a violation of the free trade deal between the two countries.

According to the report, people familiar with the matter are saying the office of the US Trade Representative will request the formation of a dispute resolution panel under the auspices of the US-Mexico-Canada Agreement.

The US had initiated a new round of dispute settlement consultations with Mexico in June, under the rules of the pact.

On Wednesday, the 75 day deadline passed for the two parties to come to a resolution, which now allows the United States to request that the issue be decided by a dispute settlement panel.

The United States already denied Mexico’s request for a joint scientific research program, examining the health impacts of genetically modified corn, which is being seen as evidence that the two nations are about to enter into a formal trade dispute.

Mexico has a shortage of yellow corn, used to feed livestock and for industrial purposes, since the country’s agriculture industry focuses mainly on the production of white corn, which is used primarily to make tortillas.

Mexico is seeking the right to ban GM corn for human consumption, which is primarily white corn. Eventually it is looking to also ban GM yellow corn which is used primarily for livestock feed, as the government feels that GM corn could have health risks, and its cultivation may harm native varieties.