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USMCA enters renegotiation as the U.S. seeks changes, ag groups back updates

Trade Representative Jamieson Greer says the United States isn’t renewing the U.S.-Mexico-Canada Agreement in its current form and will pursue changes.

Gregg Doud, the CEO of the National Milk Producers Federation and a former chief ag negotiator, says it’s the next stage in the process, and how the agreement was designed.

“What this really does is kick in now an annual review process and from there, the honest answer is it’s a negotiation.”

All three countries met virtually on Wednesday to conduct a joint review of the agreement. Following the meeting, Greer issued a statement saying the U.S. will continue to engage with the two countries to address the shortcomings and trade deficits.

Many ag groups have said they’re supportive of USMCA updates.

Doud says Canada needs to be held accountable for how it administers dairy tariff-rate quotas.

“They all tend to allocate those tariffs to folks that won’t use the tariff, and that’s not how you do this. That’s not what was agreed to and they know it.”

NMPF and the U.S. Dairy Export Council also say they want negotiators to strengthen enforcements so commitments are real, not theoretical, and address the protection of commonly used cheese names in discussions with Mexico.

Robert Guenther, a produce policy specialist, says fresh produce growers deserve better monitoring and enforcement against import dumping.

“Then, when there are bad actors trying to get around a system they are penalized and held accountable for their actions.”

The Agriculture Coalition for USMCA sent a letter to President Trump on Monday, signed by more than 2,300 farmers, urging renewal of the USMCA with targeted improvements. 

“The USMCA is foundational to American food and agriculture’s success, providing expanded cross-border rail traffic, long-term policy certainty, and greater supply chain predictability for American producers – and this agreement delivers for American consumers, too,” the letter said. 

The National Corn Growers Association urges the three countries to make progress on the agreement, noting USMCA is the single most important trade agreement to the corn industry, and farmers need the long-term certainty USMCA provides.

Doud says the USMCA remains in effect unless a country formally withdraws from the agreement. The U.S. is scheduled to meet with Mexico the week of July 20 for a third round of bilateral negotiations.

Hear Brownfield’s interview with Gregg Doud.

Hear Brownfield’s interview with Robert Guenther.