Major U.S. businesses are putting together a large coalition to help lobby lawmakers and ask them to ratify the U.S.-Mexico-Canada Agreement. An industry source tells Politico that up to three dozen associations across different sectors of the economy are involved. However, the official start date for the coalition’s efforts has not been released yet. U.S. Chamber of Commerce President Tom Donohue expressed confidence that lawmakers will ultimately ratify the USMCA because of just how important America’s trading relationship is with its two biggest export markets, Mexico and Canada.
In his annual “State of American Business” speech, Donohue asks the Trump Administration to drop the steel and aluminum tariffs on imports from Canada and Mexico. “This would be an encouraging sign for all our trading partners,” he says, “including those we’re pursuing new market-opening agreements with, like Japan, the U.K., and the European Union.” Speaking of Japan, Politico also notes that the former Japanese Ambassador to the U.S. says the Trump Administration needs to “be realistic” about what it can achieve on the agricultural front.
The National Corn Growers Association is committed to creating new market opportunities abroad for U.S. corn producers, which means more market access around the world. It also means securing the important trade markets of Canada and Mexico, getting some stability back into those relationships with the U.S.A.’s North American trading partners. NCGA says that the first NAFTA has been an unprecedented success in helping America’s corn producers. Going back to 1994, American corn exports to these regional partners have increased 300 percent. Mexico is now the top destination for U.S. corn exports.
Recent corn exports to Mexico were up 13 percent for 2017-2018 when compared to the previous year. The total reached a record high of 15.7 million tons, or 618 million bushels. Earlier reports have President Trump considering early withdrawal of NAFTA as a way to pressure Congress into approving the deal. However, NCGA says those markets are vital to U.S. corn farmers and far too important to potentially put at risk.
Source: NAFB News Service