USMCA Reality
From the Ag Information Network, I’m Bob Larson with today’s Fruit Grower Report. It’s not secret that the U.S. did not agree to renew the U.S.-Mexico-Canada Agreement, a decision met with disappointment among many in agricultural.
Dr. Megan Roberts, ag economist with Compeer Financial, says it’s disappointing because trade is vital to the success of U.S. agriculture …
ROBERTS … “Mexico and Canada, on an annual basis, are continually our number one and two destinations for U.S. agricultural products.”
But despite the administration’s decision to not renew it, the agreement is still in place …
ROBERTS … “What was announced was that we're going to move from a renewal to an annual review. So, USMCA is still in place, but we are now going through annual review processes, and that is maybe going to create a little more uncertainty on this agreement.”
The USMCA now goes to an annual review for ten years and will expire if it’s not renewed before then …
ROBERTS … “It means that we're going to see these trade discussions between our trade representatives in Canada, Mexico, and the United States continue. There is, instead of a longer-term agreement, they will be negotiating on a more regular basis. So, for some opinions, that's really going to be a positive. Then, on the other side, there's maybe less of that long-term certainty.”
Again, that’s Dr. Megan Roberts of Compeer Financial.
