Trump signs USMCA; deal awaiting Canada appoval
On Jan. 29, President Donald Trump signed the United States-Mexico-Canada Agreement (USMCA), the final U.S. step to ratify the trade deal, which is expected to increase U.S. agricultural exports by $2 billion a year.
“There is definitely increased optimism on farms and ranches across America and we’re grateful for the advances, but we’re also realists eager to see results – especially for our dairy and wheat producers,” said American Farm Bureau (AFBF) President Zippy Duvall. “We know it will take time for the new deals to go into effect and translate into increased sales. We’re eager to get back into full swing supplying safe, high-quality food and agricultural products around the world.”
The USMCA is expected to result in an overall increase of $65 billion in gross domestic product, according to the AFBF. Under the terms of the agreement, Canada will increase quotas on U.S. dairy products, benefitting American dairy farmers by $242 million. Canada will also treat wheat imports the same as domestic wheat for grading purposes. Mexico has also agreed that all grading standards for ag products will be non-discriminatory. The agreement also enhances science-based trading standards among the three nations.
Mexico approved the USMCA last year. Canada is expected to ratify the pact in the next few months. The agreement will take effect 90 days after all countries have approved it.