Home Indiana Agriculture News The Long Road to USMCA Finalization

The Long Road to USMCA Finalization

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The U.S.-Mexico-Canada agreement, now signed by those three countries, still faces a long road before agriculture can reap the benefits of the trade deal. Replacing the North American Free Trade Agreement, the deal must be approved by the governments of all three nations. David Salmonsen, senior director of congressional relations at the American Farm Bureau Federation, says there are several steps before consideration by the U.S. Congress.

“There’s some required reports, the International Trade Commission is required to do a report about the economic impacts, that’s due mid-March next year,” he said. “And then the administration has to send up what’s called an implementing bill. Congress doesn’t vote on the agreement, they vote on a bill which makes the changes to U.S. law to make the agreement come into effect.”

With the agreement signed, there are few ways lawmakers can offer changes to the agreement.

“The agreement’s the agreement and it’s signed. There really is no opportunity to go in and change things. There can be what are called side letters, the implementing bill could make some accommodation for issues. Of course, we’ll have a change of leadership in the House and they’ll probably have their ideas of what they want to see in a reworked NAFTA, so, there will be some of those discussions as we go on.”

Salmonsen says finalization of the free trade agreement continues valuable trade relationships.

“Along the way, of course, there was some specific issues, especially with Canada, trying to get some more access to their very tightly controlled dairy and poultry markets. That came down to increasing quota access. The best trade is trade with the neighbors, it’s certainly the most efficient.”

Farm bureau wants to see that continue and USMCA does accomplish all that.

Source: American Farm Bureau