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USMCA: ag groups want renewal, tweaks only

The U.S.-Mexico-Canada Agreement is entering its formal review process and a coalition of ag groups want trade officials to preserve the deal while addressing trade barriers.

Krista Swanson with the National Corn Growers Association told reporters on Tuesday “since USMCA took effect in 2020, the agricultural sector has seen significant gains.”

A new economic report from the Ag Coalition for the U.S.-Mexico Canada Agreement highlights the benefits of the trilateral trade deal, including ag and seafood exports to Canada and Mexico have generated $149 billion in total economic output.

While the deal is viewed as positive, some coalition members say tweaks are needed. Nancy Martinez with the NCGA says the U.S. corn industry wants clarification Mexico cannot use non-science reasons to ban biotech.

“Throughout the dispute settlement process, Mexico has claimed cultural reasons to ban biotechnology, which is not a science-based reason.”

Shawna Morris with the National Milk Producers Federation says dairy follow-through issues should be addressed with both Mexico and Canada.

“For years now, Canada’s been playing games with access to its dairy tariff rate quotas and that’s resulted in shortfalls in export access the U.S. negotiated. They’ve also circumvented key disciplines introduced on Canadian dairy exports to limit distortions in other markets.”

Morris says Mexico still hasn’t implemented its commitments for preserving access to common cheese names.

Former USDA Under Secretary for Trade Alexis Taylor, now with the International Fresh Produce Association, says keeping USMCA a trilateral agreement is important for U.S. agriculture.

“The export markets between Canada, Mexico and the United States are highly integrated, which makes for a really efficient flow of goods, which ultimately saves money to the end consumer.”

Swanson says the USMCA provides certainty and if that framework is removed, it would create an environment of greater instability for U.S. agriculture.

On July 1, the U.S., Mexico and Canada are expected to meet for the joint review to discuss renewing the deal, annual reviews and the long-term plan for USMCA.