U.S., Canada, Mexico sign trade deal
At a ceremony during the G20 Summitt in Buenos, Aires, Argentina, on Nov. 30, President Donald Trump, Mexican President Enrique Pena Nieto and Canada Prime Minister Justin Trudeau signed the U.S. Mexico Canada Agreement (USMCA), a trade pact that replaces the North American Free Trade Agreement (NAFTA).
According to the American Farm Bureau Federation, the USMCA not only locks in market opportunities previously developed with our North American neighbors, but also builds on those trade relationships in several key areas:
• U.S. producers gain new market access for dairy and poultry products in Canada and maintains the zero-tariff platform on all other ag products and on all ag products to Mexico;
• Canada agreed to end its Class 7 dairy pricing scheme;
• U.S. dairy products gain access to an additional 3.6 percent of Canada’s dairy market, a move that is even better than terms under TPP;
• Canada agreed to treat wheat imports the same as domestic wheat for grading and pricing, and Mexico and the U.S. agreed that all grading standards for ag products will be non-discriminatory;
• Provisions that 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.