The U.S. International Trade Commission today issued its evaluation of the U.S.-Mexico-Canada trade agreement and its impact on the U.S. economy, a required step before Congress can consider ratification of the deal. The USITC concluded that USMCA will have an overall favorable impact on the U.S. economy, increasing U.S. exports to Mexico and Canada by nearly 7% and 6%, respectively.
“NPPC supports ratification of USMCA, an agreement that preserves zero-tariff access to markets that represent more than 30% of total U.S. pork exports,” says Nick Giordano, National Pork Producers Council vice president and counsel, global government affairs. “We are eager to see the removal of U.S. metal tariffs that prompted Mexico’s 20% retaliatory tariffs nearly a year ago. Members of Congress have said that ratification of USMCA will be delayed and the benefits of the agreement diluted as long as this trade dispute goes unresolved.”
Giordano adds, “The value of U.S. pork exports to Mexico are down 32% this year due to punitive tariffs. Our farmers need zero-tariff trade restored to our largest export market.”
The NPPC has designated USMCA ratification as a “key vote” and will closely monitor support of the agreement among members of Congress. U.S. pork exports to Mexico and Canada support 16,000 U.S. jobs.
The National Corn Growers Association lauds the ITC report as a positive step. NCGA President Lynn Chrisp says “The release of the ITC report is an important step in moving USMCA toward Congressional action. ITC reports typically measure the economic impact of new trade agreements and focus on market access. USMCA is different — it’s an update to the North American Free Trade Agreement — which already eliminated most tariffs on exports of U.S. food and agriculture products. So, the ITC report released today doesn’t fully capture the economic benefits of trade with Canada and Mexico, nor the improvements to trade rules in USMCA that benefit agriculture.
“NAFTA has been a resounding success for agriculture. In 2016 alone, American corn growers exported $3.2 billion in corn and corn co-products to Mexico and Canada. USMCA secures and builds upon this important partnership, which is why ratifying USMCA is so important for agriculture.”