LANSING — With the delivery of the required formal notice to Congress, the Trump administration has officially taken the first step toward renegotiating the North American Free Trade Agreement (NAFTA). In a letter to Congress, United States Trade Representative (USTR) Robert Lighthizer announced that President Trump intends to renegotiate the North American Free Trade Agreement (NAFTA).
“For years, politicians have called for the renegotiation of this agreement, but President Trump is the first to follow through with that promise,” said Ambassador Lighthizer. “USTR will now continue consultations with Congress and American stakeholders to create an agreement that advances the interests of America’s workers, farmers, ranchers, and businesses.”
Michigan Farm Bureau (MFB) Associate National Legislative Counsel John Kran said the USTR notice will start a 90-day clock before any formal negotiations can begin. “This is the opportunity for the country to react to the President’s notice, and for feedback from voters and members of Congress to get surfaced and shared with the Administration before the formal negotiation process can begin,” he said.
To help members stay up-to-date, MFB has developed a new TRADE page on the organization’s website that will be updated as needed, says Kran. “Make no mistake – NAFTA matters to US agriculture,” he said. “Canada and Mexico account for one-third of all U.S. agricultural exports.”
In a formal statement, American Farm Bureau Federation President Zippy Duvall said the American Farm Bureau will work with the administration, Congress, other agricultural groups, and officials in Canada and Mexico to protect these important markets while also addressing issues that have limited the trade potential of U.S. farmers and ranchers.
“We remain committed to the goal of a positive, market-expanding and modernized NAFTA,” Duvall said. “Achieving this objective starts with ensuring the negotiations protect U.S. agriculture’s benefits under the current trade agreement.”
In the letter to Congress, Ambassador Lighthizer expressed the Trump Administration’s commitment to concluding the negotiations with timely and substantive results for U.S. consumers, businesses, farmers, ranchers, and workers.
“These goals will be pursued consistent with U.S. priorities and the negotiating objectives established by Congress in the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA). Negotiations will begin no earlier than August 16, 2017,” Lighthizer said.
According to AFBF’s Duvall, TPA will give the agriculture community and other stakeholders the opportunity to provide input and share significant agricultural expertise with U.S. negotiators.
“Our ability to be part of these negotiations is important to our members and will help ensure the outcome improves trade relationships with our neighboring countries,” Duvall said. “Mexico and Canada are two of our largest export markets for the commodities and products raised on U.S. farms. America’s farmers value them as customers and trade partners. We will work to ensure that NAFTA renegotiation strengthens that critical relationship.”
NAFTA & Michigan Agriculture Facts
- $1.1 billion in agriculture exports to Canada in 2015
- $114 million in agriculture exports to Mexico in 2015
- Top export markets: Canada, Japan, Mexico, China and South Korea
- Support over 26,000 jobs on and off farms, and in food processing, storage and transportation
- Every $1 in export activity generates another $1.22 in economic activity
NAFTA & U.S. Agriculture Facts
- One in four U.S. hogs are exported worldwide
- Mexico buys nearly 30 percent of U.S. exported milk
- Canada and Mexico are the largest markets for U.S. apples and pears
- The U.S. supplies nearly 100% of the corn Mexico imports
- Every tenth row of corn planted goes to Canada or Mexico.
- Mexico is the largest U.S. wheat buyer, importing more than 10 percent of all wheat exports.
- Mexico and Canada are the second and third largest markets for U.S. soybeans, meal and oil.
— Michigan Farm Bureau
For more news from Michigan, click here.