While the International Trade Commission (ITC) report on the United States-Mexico-Canada Agreement (USMCA) demonstrated marginal increases in agricultural exports, the value of USMCA to soybean producers goes beyond the pages released yesterday. The report is a good tool, yet it does not account for valuable non-tariff provisions in the “new NAFTA” –or look back historically on the myriad benefits to agriculture since NAFTA’s inception.
Davie Stephens, soy grower from Clinton, Kentucky, and American Soybean Association (ASA) president said, “USMCA builds upon the strong foundation set by the original NAFTA. Under NAFTA, the value of agricultural exports to Canada and Mexico increased to roughly $43 billion each year. Soybean exports to Mexico quadrupled under NAFTA, making Mexico the number two market for U.S. soybeans, meal and oil. We also saw a doubling of soybean exports to Canada, making it the number four market for soybean meal and the number seven market for soybean oil.”
Stephens continued, “We know that the modernizations included in USMCA will make trade with our North American neighbors even smoother. These non-tariff enhancements include the highest enforceable sanitary and phytosanitary (SPS) standards of any trade deal to date, an enforceable biotechnology chapter that supports 21st century innovations, and create a rapid response mechanism to address trade challenges. These provisions not only serve to update the North American agreement but set a paradigm for future free trade agreements.”
While continuing to review and assess the ITC, the American Soybean Association reaffirms its support for USMCA and urges Congress to pass the agreement once the bill arrives. Passage of USMCA is vital to ensuring continued trade with two of U.S. soybeans’ top trading partners, Canada and Mexico.
Information provided by the American Soybean Association.