close [X]

USMCA

Credit: AFBF 

Issue at a Glance

With more than $2 billion in additional farm exports and $65 billion in gross domestic product on the line, U.S. farmers and ranchers are anxious for Congress to approve the U.S.-Mexico-Canada Agreement. The three countries signed the USMCA, the successor to NAFTA, on Nov. 30, 2018.

Ratification by Congress

As required by law, The Trump administration on May 30 submitted to Congress a Statement of Administrative Action. Next, the administration will send to lawmakers a draft of the implementing legislation, which will trigger a 60-day deadline on House consideration of the trade agreement. President Trump has indicated he will do that as soon as Democratic support in the House has been secured. The Republican-led Senate will vote after the House.

AFBF President Zippy Duvall at the Rally for Passage of USMCA on Sept. 12, 2019.

Key Points

  • The USMCA will provide new market access for dairy and poultry products in Canada and maintains the zero-tariff platform on all other ag products and on all ag products to Mexico.
  • Canada agreed to end its Class 7 dairy pricing scheme.
  • U.S. dairy products gain access to an additional 3.6% of Canada’s dairy market, a move that is even better than terms under the Trans-Pacific Partnership.
  • Canada also agreed to treat wheat imports the same as domestic wheat for grading and pricing, and Mexico and the U.S. agreed that all grading standards for ag products will be non-discriminatory.
  • This is the first free trade agreement for the U.S. that addresses cooperation, information sharing and other trade rules related to biotechnology and gene editing.
  • There are also provisions that enhance science-based trading standards among the three nations as the basis for sanitary and phytosanitary measures for ag products, as well as progress in the area of geographic indications.

Additional resources, including AFBF news and market analysis, can be found here.

Share This Article