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Photo by Lea Kimley.

Trade progress for U.S. agriculture with USMCA

In early December, U.S., Mexican and Canadian officials signed the United States, Mexico, Canada Agreement (USMCA) after a year of intense negotiations on the trade pact.

“[The] signing of the U.S.-Mexico-Canada Agreement continues the progress American farmers and ranchers have made since the North American Free Trade Agreement (NAFTA) took effect in 1994,” said Zippy Duvall, American Farm Bureau Federation president. “Agricultural exports to Canada and Mexico increased from $8.9 billion to $39 billion under NAFTA. That boost provided important markets for farmers and ranchers whose productivity has only grown since the agreement was signed. USMCA keeps all those gains and adds improvements in poultry, eggs, dairy and wine. In every way, this new agreement is just as good, if not better than, the one that came before. We thank the Office of the U.S. Trade Representative for all the hard work that went into this accord.

“As good as all this news is, farmers and ranchers still face retaliatory tariffs over steel and aluminum disputes with our North American neighbors and other trading partners. We urge the administration to redouble its efforts to come to an agreement on those outstanding issues so we can regain the markets we had not long ago.”

The National Pork Producers Council is also pleased with USMCA. The agreement maintains zero-duty market access to Canada and Mexico for U.S. pork. However, the punitive 20% tariffs on U.S. pork exported to Mexico remain in effect and are inflicting significant financial harm on the U.S. pork industry. The United States and Mexico continue to intensely negotiate a resolution to the metal tariffs, and NPPC is hopeful that the matter will soon be resolved.

National Farmers Union President Roger Johnson said that while USMCA makes important improvements over NAFTA, the deal currently does not go far enough to institute a fair trade framework that benefits family farmers and ranchers and restores sovereignty to the U.S. In response to the signing, Johnson urged Congress to demand the administration make changes to the deal before ratifying it.

“President Trump campaigned against the major flaws in international trade agreements that the original NAFTA created the framework for, and rightly so. It is this framework that has led to our annual $500 billion trade deficit, exported jobs, lowered wages, and lost sovereignty. NAFTA renegotiation is a key opportunity to create a trade framework for our future,” Johnson said. “The reworked agreement makes improvements to eradicate ISDS — the dispute settlement system that gives corporations an unwarranted advantage over citizens — yet the agreement maintains ISDS provisions for some oil and gas companies. And while this is the first U.S. trade pact to include rules on currency manipulation, these rules lack the teeth they need to be effective. As of right now, only the transparency requirements are binding.

“Finally, the USMCA ignores the sovereignty Americans have lost as part of NAFTA, particularly with respect to food labeling. Canada, Mexico, and multinational meatpackers pressured Congress—using NAFTA provisions—to scrap the commonsense Country-of-Origin Labeling for beef and pork that American consumers and producers benefitted from. These labels should be allowed under a new USMCA.”

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