WASHINGTON — Editor’s note: President Donald Trump has signed the U.S.-Mexico-Canada Agreement (USMCA). The below statements from agricultural organizations were released following this signing ceremony.
USMCA Signing Increases Optimism
Today’s signing of the United States-Mexico-Canada Agreement (USMCA) by President Trump increases hopes that 2020 will begin a stronger decade for America’s farmers and ranchers.
“There is definitely increased optimism on farms and ranches across America and we’re grateful for the advances, but we’re also realists eager to see results – especially for our dairy and wheat producers,” said American Farm Bureau President Zippy Duvall. “We know it will take time for the new deals to go into effect and translate into increased sales. We’re eager to get back into full swing supplying safe, high-quality food and agricultural products around the world.”
The USMCA is expected to increase agricultural exports from the U.S. by $2 billion and result in an overall increase of $65 billion in gross domestic product. Canada will increase quotas on U.S. dairy products, benefitting American dairy farmers by $242 million. Canada will also treat wheat imports the same as domestic wheat for grading purposes. Mexico has also agreed that all grading standards for ag products will be non-discriminatory. The agreement also enhances science-based trading standards among the three nations.
President Trump’s signature was the final step in enacting the agreement in the U.S. Mexico approved the USMCA last year. Canada must still ratify the pact, which is expected to occur in the next few months. The agreement will take effect 90 days after all countries have approved it.
USMCA comes on the heels of a string of trade successes. The China Phase 1 Agreement signed last month goes into effect in mid-February. The U.S.-Japan Trade Agreement signed last fall went into effect this month.
USMCA Nears Completion with Trump’s Signature
During a ceremony held today at the White House, President Donald Trump signed the U.S.-Mexico-Canada Agreement (USMCA) into law. Though the agreement has already been approved by Mexico, it will not be fully implemented until it is ratified by the Canadian government.
National Farmers Union (NFU) opposed the free trade framework established by USMCA’s predecessor, the North American Free Trade Agreement, and the organization initially withheld endorsement for USMCA when it was introduced over a year ago. However, the NFU Board of Directors later voted to support it after the House Democrats made several notable improvements. In a statement, NFU President Roger Johnson thanked House Democrats for working to strengthen the deal and applauded its passage:
“Since NAFTA set a precedent for unfettered free trade two-and-a-half decades ago, our nation’s trade deals have favored the interests of multinational corporations at the expense of family farmers and ranchers and rural economies. With the passage of USMCA, we are hopeful that this era is finally over and that some equity will be restored to international markets.
“We are especially pleased to see significant improvements over earlier versions of this deal, including stronger labor, environmental, and enforcement provisions as well as the elimination of giveaways to the pharmaceutical industry. These improvements are the direct result of many months of negotiations by Speaker Pelosi and House Democrats, for which we commend them.
“Though USMCA is a big step forward, it should be a floor for future trade deals, not a ceiling; when negotiating with other trading partners, we encourage the Trump administration and Congress to build on this momentum to establish fair trade agreements that protect rural jobs, ensure fair prices for farmers, and restore sovereignty to the United States.”
NCGA: USMCA a Win for Agriculture
National Corn Growers Association President Kevin Ross today declared President Trump’s signing of the new United States-Mexico-Canada Agreement (USMCA) a big win for American agriculture. Mexico and Canada are the U.S. corn industry’s largest, most reliable market; 21.4 million metric tons of corn and corn co-products, valued at $4.56 billion, were exported to Mexico and Canada in 2018. The signing follows overwhelming Congressional support for the trade deal.
Ross made the following statement.
“This is a big win for America’s farmers, our rural communities and the American economy. USMCA builds on our already successful trading partnership with Mexico and Canada. This agreement should serve as a template for opening the door to new market opportunities for U.S. corn. Corn farmers are grateful for the hard work done by the President, the U.S. Trade Representative and everyone in the Administration who made today’s signing possible.”
Ross attended today’s White House signing along with Ohio Corn and Wheat Growers Association President Patty Mann, Minnesota Corn Growers Association President Les Anderson and Wisconsin Corn Growers Association President Doug Rebout. Passing USMCA was NCGA’s top legislative priority for 2019, and the organization will continue to work with the Administration to identify future opportunities for market access and new agreements.
Soy Leaders Attend USMCA Signing in Support of Trade Deal
Members of the American Soybean Association (ASA) board of directors from five states attended the United States-Mexico-Canada (USMCA) trade agreement signing ceremony at the White House in celebration of the new treaty. ASA represents soy farmers from 30 total soy-producing states and is pleased to see the agreement signed into law.
“This final step by President Trump ensures soybean growers will maintain access to two of their top markets, and it will also support the poultry and dairy industries that are important to soy,” said Bill Gordon, ASA president and grower from Worthington, MN. Gordon continued, “We reiterate our hearty thanks to both houses of Congress, the President, and their staff who worked together to make this important deal happen.”
Gordon, Brad Doyle (AR) -pictured between VP Pence & President Trump, Bret Davis (OH), Daryl Cates (IL), and Brad Kremer (WI) joined leaders from other agriculture groups who attended the signing on behalf of their industries and who have supported USMCA as an opportunity for market certainty and continued growth.
Mexico has already acted on USMCA, and Canada’s Parliament is expected to follow the United States and approve the deal in the coming weeks. The deal is expected to take effect later this year after additional procedural steps.
Mexico is the #2 market for whole beans, meal and oil, and Canada is the #4 buyer of meal and #7 buyer of oil for U.S. soybean farmers, making the trade agreement essential to sustaining the growth realized in those two countries under the North American Free Trade Agreement (NAFTA). Under NAFTA, U.S. soybean sales to Mexico quadrupled and to Canada doubled.
U.S. Wheat Industry Applauds the Trump Administration for Signing the U.S. Mexico-Canada Agreement into Law
Today, the National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) extend thanks to President Trump for signing the U.S.-Mexico-Canada Agreement (USMCA) into law, making it an official trade agreement.
“USMCA will bring some guarantee to the unpredictable climate of farming,” said National Association of Wheat Growers (NAWG) President and Lavon, Tex., farmer Ben Scholz. “Trade deals create markets which provide stability for growers, making the profession more attractive to future generations. NAWG would like to thank the Administration again for working to get this agreement finalized.”
“Wheat farmers and Mexico’s wheat buyers are very glad to see the cloud of uncertainty lifted from our trade relationship,” said U.S. Wheat Associates (USW) Chairman and Paulding, Ohio, wheat farmer Doug Goyings. “Replacing NAFTA without harm to the wheat trade relationship was a priority for all of us – mission accomplished.”
USMCA retains tariff-free access to imported U.S. wheat for those long-time flour milling customers in Mexico, a crucial step toward rebuilding trust in the U.S. as a reliable supplier in this important, neighboring market. In addition, the USMCA makes important progress towards more open commerce for U.S. wheat farmers near the Canadian border by allowing U.S. varieties registered in Canada to receive reciprocal grading treatment.
Other measures that benefit the wheat industry include the Agreement’s language around agricultural biotechnology which supports 21st Century innovations in agriculture and new language to strengthen disciplines for science-based SPS measures.
For more articles concerning the USMCA, click here.