By Julie Tomascik
Editor
The Canadian Parliament ratified the new U.S.-Mexico-Canada Agreement (USMCA) on Friday, March 13, before taking a recess to help stop the spread of the coronavirus.
Canada was the last of the three parties to adopt the trade deal.
The U.S. Congress ratified the trade pact on Jan. 29, 2020, and Mexico’s government on June 19, 2019.
“Now that the USMCA has been approved by all three countries, an historic new chapter for North American trade has begun,” U.S. Trade Representative Robert Lighthizer said in a statement. “This landmark achievement would not be possible without President Trump’s leadership and determination to strengthen our economy and the hard work of our negotiating partners in Canada and Mexico. USMCA is the gold standard by which all future trade agreements will be judged, and citizens of all three countries will benefit for years to come.”
USMCA will replace the decades-old North American Free Trade Agreement (NAFTA).
“USMCA builds on the success of NAFTA. The new agreement leads to even stronger partnerships with our country’s nearest neighbors,” Texas Farm Bureau President Russell Boening said. “Trade is vital to the livelihood of American farmers, consumers and the U.S. food industry.”
USMCA addresses agricultural biotechnology, supports innovation and reduces trade-distorting policies.
The trade deal will expand job opportunities in Texas and the U.S.
An independent International Trade Commission report estimates USMCA will add $68.2 billion to annual gross domestic product and create more than 176,000 additional jobs.
More than 950,000 Texas jobs are supported by trade with Mexico and Canada. In 2018, Texas exported more than $137 billion worth of products to its North American partners, accounting for 43 percent of Texas’ total exports to the world.
USMCA will also establish modern sanitary and phytosanitary standards.
New provisions under the trade deal will strengthen and enforce environmental and labor obligations, which makes strides in leveling the playing field for Texas and U.S. workers and businesses.
Under the agreement, Canada will terminate its discriminatory wheat grading system that has previously kept U.S. wheat from being competitive in the market. It will also require Canada to drop its Class 6 and 7 dairy pricing system that allowed Canadian farmers to undersell U.S. dairy products on the global market.
USMCA also will grant U.S. poultry farmers more access to Canada.
“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,” Boening said. “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. There are also provisions that enhance science-based trading standards among the three nations as the basis for sanitary and phytosanitary measures for agricultural products.”
Now, the three countries will begin to work on implementation of the trade agreement.