USMCA thank you

The signing of the United States-Mexico-Canada Agreement by President Donald Trump increases hopes that 2020 will begin a stronger decade for America’s farmers.

“The United States-Mexico-Canada Agreement secures our valuable trade partnership with our nearest neighbors and locks in continued market opportunities for agriculture that have been developed over the past two decades,” said Frank Burkett, Ohio Farm Bureau president. “USMCA equals an increase of $2 billion in ag exports and sets the stage for new deals that will level the playing field for Ohio farmers.”

The USMCA is also expected to result in an overall increase of $65 billion in gross domestic product. Canada will increase quotas on U.S. dairy products, benefiting American dairy farmers by $242 million. Canada also will treat wheat imports the same as domestic wheat for grading purposes. Mexico also has agreed that all grading standards for ag products will be nondiscriminatory. 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 United States.  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.

 

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Ryanna Tietje

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