In a press release Monday, the Alabama Farmers Federation joined agricultural groups across the country in praising the progress made by President Donald Trump’s administration on trade agreements.
That same day, Trump announced a renegotiated trade deal with Canada, which sets the stage for replacing the North American Free Trade Agreement (NAFTA) with the new United States-Mexico-Canada Agreement (USMCA). The U.S. and Mexico previously agreed to new trade terms in August.
“This is good news for farmers and our nation as a whole,” Federation President Jimmy Parnell outlined. “Canada and Mexico are our two largest export markets. This agreement not only preserves our partnership with these neighbors, but it also shows the United States can get a better deal for American farmers, businesses and families through strong negotiations.”
The Canada agreement comes on the heels of a new trade deal signed last week by Trump and South Korea President Moon Jae-in.
The USMCA will importantly provide new market access for dairy and poultry products. The American Farm Bureau Federation (AFBF) explained that the agreement is especially important for dairy farmers because it eliminates aspects of Canada’s dairy program (Classes 6 and 7) that were used to undercut U.S. sales of dried milk products. In fact, under the newly unveiled agreement, American dairy products gain access to an additional 3.6 percent of Canada’s dairy market.
“Today’s announcement regarding the U.S.-Mexico-Canada Agreement is welcome news,” AFBF President Zippy Duvall said. “This was a hard-fought win and we commend the administration for all the efforts to solidify the trading relationships we have with our North American neighbors.”
He added, “Trade is critical to agriculture, especially trade with our two closest neighbors. We are grateful for the progress with Mexico and Canada, and we look forward to working with the Administration to strengthen new and existing opportunities for agricultural trade across the globe.”
Canada has additionally agreed to grade imports of American wheat in a manner no less favorable than their own. Meanwhile, Mexico and the U.S. agreed all grading standards for agricultural products will be non-discriminatory.
The new trade agreement still needs to be approved by Congress, which is not expected to consider the measure until next year. If Republicans fail to maintain a majority in the House of Representatives, USMCA’s legislative approval could very well be in jeopardy.
Sean Ross is a staff writer for Yellowhammer News. You can follow him on Twitter @sean_yhn
Don’t miss out! Subscribe today to have Alabama’s leading headlines delivered to your inbox.