By Jennifer Dorsett
Field Editor
The Trump administration recently notified Congress it will move forward with enforcing the U.S.-Mexico-Canada Agreement (USMCA) on July 1, ending a nearly three-year process to modernize North American trade agreements.
The U.S. also notified Canada and Mexico it had completed its domestic procedures to implement the agreement, which is the final step necessary for USMCA to enter into force, according to a release by U.S. Trade Representative Robert Lighthizer.
“The USMCA’s entry into force marks the beginning of a historic new chapter for North American trade by supporting more balanced, reciprocal trade, leading to freer markets, fairer trade and robust economic growth in North America,” the release said. “The agreement contains significant improvements and modernized approaches to rules of origin, agricultural market access, intellectual property, digital trade, financial services, labor and numerous other sectors.”
Increased agricultural market access was a key point for agricultural organizations, including Texas Farm Bureau (TFB), when advocating for the implementation of USMCA.
“Texas farmers and ranchers are currently operating in a world of uncertainty,” TFB National Legislative Director Laramie Adams said. “Strengthening our relationships with our North American trading partners through USCMA will only help during this difficult time.”
Texas farmers and ranchers will benefit by increased access to Mexican and Canadian markets across a variety of commodities, including dairy, beef, poultry and eggs, fresh produce and more, Adams noted.
The updated agreement also addressed technical barriers to trade that previously limited U.S exports to Canada of alcoholic beverages, grains and oilseeds and cheese.
A study by the U.S. International Trade Commission showed USMCA is expected to increase U.S. agricultural and food exports by $2.2 billion annually.
There has been some resistance to the implementation timeline in light of the COVID-19 pandemic.
Various industry organizations say the economic downturn will make it more difficult to enact new policies and procedures necessary to comply with USMCA.
But Adams said Texas farmers and ranchers are ready.
“We understand COVID-19 is causing some timeline concerns for some sectors,” he said. “But in agriculture, we’re ready to move forward and get the ball rolling. The pandemic has really affected our farmers and ranchers, so any new market access and stability will help.”