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Ag analysts weigh in as US, Mexico begin USMCA review process

The United States and Mexico have started public discussions on the USCMA trade agreement ahead of its planned review in 2026.

Bree Baatz, a grains and oilseed analyst with Terrain, says all three countries rely on each other’s ag products, and is optimistic about the outcome of negotiations.  “No politician wants to deal with sticky inflation as it relates to food, and so Mexico produces a lot of high labor-intensive produce commodities that we consume here in the US and we produce a lot of grain and oilseed commodities that go into feed on the Mexico side. So, I expect positive solutions going forward.”

The agreement, which replaced NAFTA in 2020, requires the three countries to hold consultations prior to a joint review after six years.  

Ag policy specialist Brad Lubben with the University of Nebraska–Lincoln says continued market access will be crucial, especially as demand from major buyers like China has weakened. “That was the number 1 customer for soybeans, and it’s absent right now. That doesn’t mean all of the soybeans are sitting in the bin, but it means that we’re pushing other markets and having to grow other opportunities.”

On Wednesday, both Mexico and the U.S. opened a public comment period while Canada recently said the country’s process will begin later this fall.

Producers can submit comments to the U.S. Trade Representative’s office until November 3.

Brownfield interviewed Baatz and Lubben at Husker Harvest Days.