USMCA Explained
USMCA Explained
Canada still has not approved it, though that may come soon.
However, President Trump was out on the South Lawn of the White House last week signing the bill that gives U.S. approval to the new North American trade pact.
The U.S.-Mexico-Canada Agreement will replace the 26-year-old North American Free Trade Agreement. The President called a great deal for American Farmers.
Key Points
Designed to replace the North American Free Trade Agreement, the USMCA builds on important trade relationships in North America.
The agreement is expected to increase U.S. ag exports by $2 billion and result in a $65 billion increase in gross domestic product.
The agreement will provide new market access for American dairy and poultry products while preserving the zero-tariff platform on all other ag products.
In particular, the agreement gives U.S. dairy products access to an additional 3.6% of Canada’s dairy market – even better than what was proposed in the Trans-Pacific Partnership trade agreement.
U.S. wheat will be treated more fairly, thanks to Canada’s agreement to grade our wheat no less favorably than its own.
Mexico and the United States have also agreed that all grading standards for ag products will be non-discriminatory.
Additional provisions enhance science-based trading standards among the three nations as the basis for sanitary and phytosanitary measures for ag products, as well as progress in the area of geographic indications.
The agreement also includes measures that address cooperation, information sharing and other trade rules among the three nations related to agricultural biotechnology and gene editing.
