Today’s signing of the United States-Mexico-Canada Agreement (USMCA) by President Trump increases hopes that 2020 will begin a stronger decade for America’s farmers and ranchers.
“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 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 increase agricultural exports from the U.S. by $2 billion and result in an overall increase of $65 billion in gross domestic product. 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.
President Trump’s signature was the final step in enacting the agreement in the U.S. Mexico approved the USMCA last year. Canada must still ratify the pact, which is expected to occur in the next few months. The agreement will take effect 90 days after all countries have approved it.
USMCA comes on the heels of a string of trade successes. The China Phase 1 Agreement signed last month goes into effect in mid-February. The U.S.-Japan Trade Agreement signed last fall went into effect this month.