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Ag economist: USMCA uncertainty could be a negotiating strategy

An ag economist says he’s watching how the Trump administration reviews the U.S. Canada Mexico Trade Agreement.

Allen Featherstone with Kansas State University with says the Trump administration has hinted that completely withdrawing from the deal is an option but, “I think it’s just a negotiating posture. For example, we’ve heard a lot of different things about trade agreements with China and other countries.”      

Recently, United States Trade Representative Jamieson Greer said that all options were on the table for renegotiating USMCA which could include separate agreements between the countries.

He tells Brownfield withdrawing from the agreement could have major implications for U.S. agriculture, but this is a similar strategy used before. “The Trum administration, historically, has taken hardline positions up front and then usually end coming to more of a reasonable type of situation and hopefully that will be the same with USMCA.”

Featherstone says Mexico and Canada remain two of the most important export markets for the U.S. and maintaining access is critical to the health of the economy.