A deal has been reached between U.S. President Donald Trump and Democrats in the House of Representatives to move forward the process of ratifying the U.S.-Mexico-Canada Agreement (USMCA).
Once ratified, USMCA would replace the existing deal between the three North American countries, the North American Free Trade Agreement, which took effect on the first day of 1994.
Since his presidency began, Trump had been advocating for a replacement for NAFTA, but USMCA had been stalled over concerns from members of the Democratic party.
With the deal reached, USMCA moves on to the House for a vote.
The news of the completion of USMCA negotiations was touted by U.S. agricultural groups. Here are some of their comments:
National Chicken Council
“USMCA will maintain and improve market access for U.S. chicken in our top two markets in terms of value, Mexico and Canada,” said National Chicken Council (NCC) President Mike Brown. “It will also positively impact both the U.S. agriculture sector and the broader national economy. …After a year of negotiations, the time to act is now. We encourage swift Congressional consideration and passage of USMCA before Christmas.”
National Turkey Federation
“The USMCA is a win for the U.S. turkey industry, and with today’s announced agreement we’re one step closer to ratification. It’s taken a great deal of hard work to reach consensus on the USMCA, and we thank President Trump, Ambassador Lighthizer, USDA, Speaker Pelosi and congressional leaders in both parties who have gotten us to this point,” the National Turkey Federation said in a statment.
“Now, it’s time for Congress to come together and vote in support of the USMCA, which reinforces our country’s relationship with two critical foreign markets for U.S. turkey products. The best gift Congress can give America’s turkey farmers and processors going into the new year is greater certainty these important trade relationships with Mexico and Canada will be preserved.”
American Feed Industry Association
“Now, with the ratification window quickly closing on 2019 and an election year looming, AFIA strongly urges Congress to bring the agreement to a vote,” said Constance Cullman, president and CEO of the American Feed Industry Association. “Ratifying the agreement will allow U.S. animal food producers to continue to remain competitive in the region while strengthening regulatory engagement and commitments among the three countries.”
National Association of Egg Farmers
“We are pleased a deal had been reached and look forward to its ratification before the year’s end,” said Ken Kippen, president of the National Association of Egg Farmers.
"Exports are an important market for eggs with nearly 3% of the total production of eggs nationwide are exported as shell eggs (1.56%) or egg products (1.34%) which impacts all egg farmers. National Egg Farmers notified the Trump Administration in early 2017 that Canada operates a market access program utilizing its Tariff Rate Quotas, and has restricted egg imports to 21.4 million dozen (2016 figures) under the WTO and 2.9888% under NAFTA. Mexico was an attractive market for eggs, but after NAFTA quotas were set with reference to previous imports and came with an annual increase of 3%. President Trump stated in the Rose Garden of the White House announcing his new trade agreement with Canada and Mexico, that it would benefit both poultry and eggs. In addition, the United States International Trade Commission, stated that the USMCA would increase GDP by $68.2 billion and employment by 176,000 jobs. It would have a positive impact on U.S. trade, both with USMCA partners and with the rest of the world benefiting all broad industry sectors within the U.S. economy."
National Grain and Feed Association
“We particularly appreciate the dedication and persistence of U.S. Trade Representative Robert Lighthizer and House leaders to overcome final hurdles on labor enforcement to reach this milestone,” said National Grain and Feed Association (NGFA) President and CEO Randy Gordon. “We also commend the governments of two of our most important trading partners – Mexico and Canada – in working with the United States to accommodate these concerns.
“We urge the House to expeditiously pass this agreement so it can be ratified by the Senate this year. Doing so will be a tremendous win for the United States and the entire North American region and our interdependent economies.”
According to NGFA, the USMCA trade agreement will preserve or expand upon critical market access for U.S. agricultural products in the North American market. In addition to maintaining a tariff-free environment for most agricultural goods, USMCA also will help address non-tariff barriers, which are paramount among the current global challenges that distort and slow cross-border trade flows. Among other benefits, NGFA says the USMCA will:
- Facilitate cross-border trade flows through higher levels of regulatory coherence and cooperation
- Implement timelines and notifications for adverse import checks; include steps to reduce the likelihood of trade disruptions in products of agricultural biotechnology
- Use technical consultations for sanitary and phytosanitary (SPS) disputes and require that SPS standards be grounded in science and based on proper risk assessments and implemented using accepted risk management techniques.
North American Meat Institute
“We are pleased with the agreement reached between the Trump Administration and House Leadership allowing Congress to consider USMCA before the holidays,” said North American Meat Institute President and CEO Julie Anna Potts. “The U.S. meat and poultry industry exports $5.5 billion annually in products to Canada and Mexico. Swift adoption of this agreement is critical to meat and poultry processors and the millions of U.S. farmers, ranchers, allied manufacturers and transportation companies in the food supply chain.”
Farmers for Free Trade
“This is welcome news and a relief for American farmers. Now it’s time to get the bill passed before politics can get in the way,” said Angela Hofmann, Farmers for Free Trade (FFT) co-executive director.
“If Congress can come together to pass USMCA it will deliver a measure of certainty farmers badly need right now. Farmers have been struggling in the face of bad weather and unpredictable trade policy. Passing USMCA will guarantee that our farmers’ closest and most important markets, will remain free from tariffs and red tape. NAFTA has been a windfall for American agriculture and USMCA is projected to build on that success by growing farm exports and modernizing ag trade.”
“We commend Speaker Pelosi, Ambassador Lighthizer and the many Congressional leaders on both side of the aisle who have worked diligently to get to a deal. It’s a great reminder that opening markets for American farmers should never be a partisan issue. We urge both sides to continue to heed the calls of American farmers and quickly pass this agreement.”
.American Farm Bureau Federation
“We urge members of Congress to swiftly approve the United States-Mexico-Canada Agreement. Agriculture is at a critical crossroads with the downturn in commodity prices, losses from natural disasters and the trade war. This is an opportunity for Congress not only to help U.S. farmers and ranchers turn the corner on trade, but also show that Washington can still get things done on a bipartisan basis,” said American Farm Bureau Federation President Zippy Duvall.
“Ratification of the USMCA would build on the momentum of the U.S.-Japan agreement, which gave a major boost to American agricultural products in our fourth-largest market, and send a signal that the U.S. is back in business in the international marketplace."
