USMCA Talks with USTR

From the Ag Information Network, I’m Bob Larson. USTR Chief Ag Trade Negotiator Julie Callahan recently addressed rumors that the six-year review of USMCA this year could turn into separate bilateral talks with Canada and Mexico.

Callahan spoke about the rumors at the recent USDA Ag Outlook Forum …

CALLAHAN … “Certainly, there are areas of the USMCA that we want to take a look at that focus more on our agricultural trade deficit with Canada, our agricultural trade deficit with Mexico.”

But just as in the original USMCA negotiations, Callahan says talks will occur between and across all three North American partners. And that’s due to differences in trade frictions …

CALLAHAN ... “Canada’s dairy TRQs are a very bilateral issue. Mexico has less interest in that, so it really is a discussion between the United States and Canada.”

While U.S.-Mexico talks could focus on GMO non-tariff barriers and outstanding seasonal produce issues. But Canada remains a big concern …

CALLAHAN … “From 2020 to 2024, our agricultural trade deficit with Canada went from $3 billion to almost $12 billion. Something is going on there that we really need to look at.”

Callahan insists there must be “reciprocity” in trade, and the U.S. shouldn’t be offshoring its “value-added” Ag production.

She says the U.S. must find ways to turn its USMCA ag trade deficits into surpluses, so that all U.S. producers can benefit from the agreement.