The Senate Finance Committee examined the U.S.-Mexico-Canada Agreement recently, weighing its benefits and where changes may be needed.
Committee Chairman Mike Crapo, a Republican from Idaho, praised the agreement’s role in improving farm profitability but said this summer’s review will be critical for American agriculture.
“It is wise to remember to not let the perfect become the enemy of the good,” Crapo said. “Mexico and Canada are two of our most important trading partners. That strong partnership will continue to drive forward America’s economic competitiveness. This trilateral relationship should not be taken for granted.”
Ranking member Ron Wyden, a Democrat from Oregon, said USMCA is a strong, bipartisan trade deal. However, he said he’s concerned that it lacks enforcement.
“Since Donald Trump took office last year, his U.S. Trade Representative has not begun a single enforcement case under USMCA,” Wyden said. “It hasn’t even taken the first step.”
Kevin Brady, a former Chairman of the Committee on Ways and Means, testified that strengthening the agreement will help support the supply chain and reduce the country’s reliance on China.
“As customers, together they (Canada and Mexico) buy five times more “Made in America” products and services than any other country in the world, supporting 13 million jobs,” Brady said.
Paul McCarthy, President and CEO of MEMA-The Vehicle Suppliers Association, said the agreement is working for American manufacturers. “It has strengthened domestic manufacturing and driven growth for suppliers,” McCarthy said.
Ted Vander Schaaf with the Northwest Dairy Association testified that he wants the USMCA review process to address how Canada has been managing its tariff rate quota system.
“Canada continues to administer its dairy TRQs in a manner that restricts imports by reserving the vast majority of quota volumes for domestic processors who lack incentives to import,” Vander Schaaf said. "Meanwhile, distributors get minimal amount of quota while retailers, restaurants, and food service operators are excluded entirely.” Vander Schaaf added that U.S. dairy farmers have essentially been denied market access by Canada.
USMCA is scheduled for review and possible renewal in July of 2026.
EDITOR’S TAKE:
We have mentioned the review of USMCA previously, but more reactions are now surfacing as the renewal date gets closer. Overall, USMCA seems to be working as intended. When it was first signed, all three parties praised the agreement, calling it the answer to most of the issues bubbling up from the previous NAFTA contract. As with most agreements of this nature, conditions change, leaders change and new issues arise. And because the extension is for sixteen years, it would be a good idea to iron out as many of those concerns now. For instance, dairy quotas have favored Canada and restricted U.S. products for years. Let’s fix it once and for all. We are better off working with our closest trading partners and finding a way to coexist. The USMCA may not be perfect, but let’s fix what we can and move forward with the extension.
As the details emerge, we will be sure to keep you informed about this issue since it is important for autos/trucks and agriculture. After all, both of these topics are of major concern to CAD members. In the interim, keep promoting your inventory on AgTruckTrader.com®. AgTT is the one place farmers/ranchers can depend on to research where to find the trucks they are looking for!
