Lawmakers and industry representatives want to see the U.S.-Mexico-Canada Agreement improved to better support U.S. agriculture.
During a recent U.S. House Ag Committee hearing, Chairman Glenn “GT” Thompson said the trilateral trade agreement remains one of the most important frameworks for the ag industry.
“USMCA maintains tariff-free treatment for certain agricultural products, while also expanding market access for a wide range of U.S. grown commodities,” he says. “Mexico and Canada have collectively purchased more than $60 billion in ag commodities annually.”
But Michael Lichte with Dairy Farmers of America says dairy policy within the agreement needs to be addressed. “Canada’s administration of its dairy quotas has limited their usability,” he says. “Canadian dairy pricing policies continue to create conditions that distort trade and impact competitiveness for U.S. producers.”
Dave Puglia, President and CEO of the Western Growers Association, says the review of USMCA could address trade barriers between the three countries. “The USMCA renewal presents an opportunity for the United States to ensure that food safety oversight and standards are as vigorous in Mexico as they are domestically,” he says. “The trade tensions between our countries have also resulted in Canadian consumers looking to diversify away from American produce.”
A joint review of the agreement is set to begin on July 1st.
Reuters' David Shepardson reported that President Donald Trump said recently that the U.S. might not renew its free trade agreement with Canada and Mexico and criticized trade deficits with those countries, although he said he was talking with their leaders about the matter. President Trump said at the White House: 'We don't need anything that Canada has. We don't need anything that Mexico has, but they need everything that we have. They have to treat us better."
EDITOR’S TAKE:
It is interesting to follow this USMCA issue where some groups favor simply renewing the agreement as is and moving forward. Others, as noted in this article, desire updates and changes before it is renewed, especially the dairy industry. And now, President Trump is suggesting perhaps we don’t need it anymore. That statement does seem like a negotiating ploy! Nevertheless, the agreement will be reviewed, some changes will likely be addressed and made, and in the end, the agreement will survive for another few years.
Overall, the USMCA has been more of a positive for U.S. agriculture. We expect it to be even better going forward. That can only mean improved markets and financial benefits for our farmers/ranchers. Until then, use your most potent ag customer tool – AgPack®. It provides products and services farmers/ranchers can use and it doesn’t cost them a dime; it is a benefit. And the savings can be significant, with nearly $50,000 in exclusive rebates and discounts. Make sure you provide them with all the details!
