United States lawmakers spent numerous hours revising the North American Free Trade Agreement (NAFTA). The updated pact, referred to as the United States-Mexico-Canada Agreement (USMCA), is expected to significantly boost U.S. agricultural exports, after implementation.
An International Trade Commission (ITC) report suggests U.S. agricultural exports to Canada and Mexico will increase by $2.2 billion, post-implementation of the USMCA. Dave Salmonsen, senior director of congressional relations for the American Farm Bureau Federation, says trade rule adjustments prompted the projected increase.
?In the past, the ITC never had a way of putting numbers behind rules. This time they used some new modeling and came out with that number,? Salmonsen said. ?We think over time, once this is implemented, this will have beneficial effects and be a good addition to what we already have in NAFTA with the new USMCA provisions.?
Officials made changes to sanitary and phytosanitary standards and biotechnology rules. Increased quotas will also lend to a boost in U.S. Ag exports.
?We think $435 million of the $2.2 billion is new exports to Canada,? Salmsonsen said. ?They granted more access (by) raising quotas. They wouldn?t get rid of tariffs on dairy and poultry, which is the last control they have over those imports.?
Salmonsen encourages U.S. lawmakers to move forward with USMCA, which keeps and builds upon the benefits of NAFTA.
?Without this preferential tariff treatment, we?ll have other countries looking to get into those markets. We?re facing the same issues with our dealings with Japan, where other countries have better tariff treatment and are starting to take away what have been good markets for us in that country,? Salmonsen said.
