Home Indiana Agriculture News New US-Mexico-Canada Agreement Reached to Replace NAFTA

New US-Mexico-Canada Agreement Reached to Replace NAFTA

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In a tweet early Monday morning, President Trump announced that a new trade deal has been reached with Canada. It will be added into the deal already reached with the Mexico and named the United States-Mexico-Canada Agreement, or USMCA.

United States Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland issued a joint statement regarding the deal:

“Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st Century: the United States-Mexico-Canada Agreement (USMCA). USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.

“We look forward to further deepening our close economic ties when this new agreement enters into force.

“We would like to thank Mexican Economy Secretary Ildefonso Guajardo for his close collaboration over the past 13 months.”

Long-thought as the sticking point in the talks with Canada, the U.S. will see improved dairy trade. Business Insider reports Canada will allow American farmers more access to its dairy market, raising quotas on the amount of U.S. dairy that can come into the country and eliminating a pricing system for Class 7 that made it more difficult for U.S. farmers to enter the market. Many believe the change in dairy policy by Canada was part of a deal to save the Chapter 19 dispute mechanism sought by Canada.

Trump targeted the dairy issue before he officially announced the intention to renegotiate NAFTA. The access level is reportedly identical to what Canada agreed to give up as part of the Trans-Pacific Partnership that Trump withdrew the U.S. from early in his presidency.

The National Corn Growers Association President Lynn Chrisp today released the following statement after an announcement that the United States, Canada, and Mexico reached an agreement in principle on the North American Free Trade Agreement (NAFTA), renamed the US-Mexico-Canada Agreement (USMCA).

“Farmers across the country have been closely following NAFTA negotiations and reminding the administration of its promise to ‘do no harm’ to agriculture.”

“NAFTA has been an unequivocal success story for American agriculture, opening markets that since enactment have become vitally important to U.S. corn farmers, and providing certainty to farmers and the rural economy. We applaud USTR for reaching a new agreement and look forward to thoroughly evaluating it to determine if it continues to benefit American agriculture.”

ASA President and soybean grower from Keota, Iowa, John Heisdorffer said, “Our soybean harvest this year is large, and we are facing great uncertainty in China, so a modernized NAFTA is timely and beneficial for our farmers and rural communities.”

He added, “With USMCA, KORUS, and other agreements in sight, we are hopeful that a negotiated solution to the China tariffs could be in sight.”