The CEO of the National Association of State Departments of Agriculture says the upcoming review of the U.S.-Mexico-Canada Agreement could provide an opportunity to expand market access for farmers. Ted McKinney says Mexico and Canada are two very important trading partners for the U.S. “There’s so much trade between us,” he says. “I hope that nobody just blows it up and we start over. I also hope that all three countries can stay together, because we’ve got leverage over the rest of the world.”
President Trump recently said the Administration is looking at all options ahead of the review. McKinney says a strong renegotiation could increase trade between the three countries.
“Anytime you’re hung out there with a really extensive market share in another country, it opens the door for it to leverage back against you,” he says. “That’s what we’ve seen with soybeans and China. We’ve got a lot to say about the strength of the USMCA. Let’s keep it.”
Last Monday was the deadline to submit public comments to the Office of the U.S. Trade Representative ahead of next year’s USMCA renegotiation. The USTR will hold a public hearing on November 17.
EDITOR’S TAKE:
Mr. McKinney is on target. The USMCA is a good, solid foundation for trade between the three countries. With a little tweaking it can be even better. The Trump Administration has been quite vocal about some of the more egregious areas that impact agriculture. Dairy is one, fertilizer, especially potash, is another that could be fairer and more balanced, from a U.S. perspective. It is a good move to review and renegotiate the agreement on a periodic basis. That did not happen with the previous NAFTA agreement and imbalances were not addressed. Let’s hope the 2026 review of USMCA is successful for all parties.
How often do you review your customer base and make adjustments according to the current reality? Take a hard look at the farm/ranch sector and do some serious segmentation of needs and demand based on what is taking place in your particular market. Livestock producers should be at the very top of your prospect list currently. Also, evaluate what type of vehicles the farmers/ranchers are actually interested in purchasing. And as long as you’re crunching the numbers, determine if your parts and service departments could be more profitable by focusing on the ag sector and offering longer-term contracts for basic upkeep or even (as we have suggested in the past) a mobile service unit or two.
