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McKinney: U.S., Canada need to resolve trade tensions

Ted McKinney with the National Association of State Departments of Agriculture says the continued tensions between the U.S. and Canada are concerning.

“Former Ag Secretary Sonny Purdue used to say this is the best neighborhood on Earth: Canada, the U.S., and Mexico. Let’s get back to being the best neighborhood on Earth.”

McKinney, a former USDA Under Secretary for Trade, says U.S. agriculture has benefited from the trading relationship between the U.S. and Canada, and expanded tariffs will have consequences.

“It’s not as direct as ‘I want to buy that combine. It’s now 100 percent more expensive because of tariffs.’ It’s not that simple. It’s parts, it’s pieces, it’s cross-functional. Without any doubt, we’ve got to bring this to closure.”

Trade tensions between the U.S. and Canada have escalated following stalled negotiations and retaliatory tariffs.

McKinney says there are also longstanding Canadian dairy policies that need to be addressed through the U.S.-Mexico-Canada Agreement.

“Dry milk powder and butter were the best examples. Now to their credit, they minimized how much of that was occurring. There’s still some, but they’ve been reformulating their product. You know, when you put it under a different or brand new tariff code, you’ve taken it out of USMCA. That’s what I mean by the sleight of hand.”

He says there’s too much mutually beneficial trade among the U.S. Canada and Mexico to let that trading relationship deteriorate.

While it’s unclear what will get Canada back to the negotiating table…

“For goodness sake, these are adults. They understand the value of the relationship, and let’s just get it done. I think we can do that.”

NASDA is hosting its annual meeting this week, and McKinney says trade is one of the topics being discussed.

NASDA will also participate in the 35th Tri-National Agricultural Accord in Calgary later this month, bringing together agricultural leaders from the U.S., Canada and Mexico.