By Jennifer Dorsett
Field Editor
A new trade agreement between the U.S., Mexico and Canada is now one step closer to being finalized after passing the U.S. Senate Committee on Finance earlier this week.
Designed to replace the North American Free Trade Agreement (NAFTA), the U.S.-Mexico-Canada Agreement (USMCA) builds on trade relationships important to Texas and American agriculture.
After the legislation implementing USMCA overwhelmingly passed the Senate Finance Committee in a 25-3 vote, the Senate parliamentarian referred it to the following Senate Committees for review: Health, Education, Labor and Pensions; Environment and Public Works; Appropriations; Foreign Relations; Commerce, Science and Transportation; and Budget.
These committees are expected to hold meetings the week of Jan. 13 to evaluate the sections of USMCA within their jurisdiction.
The Budget Committee and the Environment and Public Works Committee will both vote Tuesday, Jan. 14, on the trade pact, while the Commerce Committee and the Health, Education, Labor and Pensions Committee are expected to vote Wednesday, according to a recent report from Politico.
The Foreign Relations Committee has indicated it will vote Thursday.
The Appropriations Committee has not yet set a date.
According to Trade Promotion Authority procedures, the Senate now has 14 session days to vote on the bill before it is discharged from those panels.
There is no date set for a full U.S. Senate vote at this time.
“The United States-Mexico-Canada Agreement will protect our valuable trade relationships with our nearest neighbors and return certainty to our markets. We urge immediate approval by the full Senate to deliver a much-needed win for agriculture,” American Farm Bureau Federation (AFBF) President Zippy Duvall said. “The challenges farmers and ranchers faced in 2019 are no secret, but it’s a new year and we are eager for new opportunities to compete, building on the progress with Japan and the pending announcement of a new China agreement. We hope the USMCA will be a model for future U.S. trade agreements as the administration pursues a level playing field around the globe for our farmers and ranchers.”
The agreement is expected to increase U.S. agricultural exports by $2 billion and result in a $65 billion increase in gross domestic product, according to AFBF market analysts.
“USMCA provides new market access for dairy and poultry products in Canada, and it maintains the zero-tariff platform on all other agricultural products to Canada and on all agricultural products to Mexico,” Texas Farm Bureau (TFB) President Russell Boening said when USMCA passed the U.S. House in December. “This is the first free trade agreement for the U.S. that addresses cooperation, information-sharing and other trade rules related to biotechnology and gene editing.”
Canada and Mexico are the United States’ top agricultural export markets, totaling a combined $40 billion in 2018. Texas exported an estimated $7.2 billion, or 18 percent of the total, in agricultural goods to the two countries.
The agreement gives U.S. dairy and poultry products further access to Canadian markets. Canada also agreed to terminate its unfair wheat grading system, ensuring U.S. wheat grown along the U.S.-Canada border will be more competitive.
Mexico and the U.S. have also agreed that all grading standards for agricultural products will be non-discriminatory.