USMCA signed into law by Trump

By Beth Newhart contact

- Last updated on GMT

“Today we are finally ending the NAFTA nightmare." Pic: Getty/CrailsheimStudio
“Today we are finally ending the NAFTA nightmare." Pic: Getty/CrailsheimStudio

Related tags: USMCA, Trade, Trade deal, NAFTA

The US Mexico Canada Agreement (USMCA) passed the House in late 2019 and the Senate earlier this month. It replaces the previous North American Free Trade Agreement (NAFTA).

On Wednesday President Donald Trump signed the USMCA deal at the White House in an outdoor ceremony. After passing the House and Senate with bipartisan votes over the last few weeks, the deal is officially ratified in the US.

Mexico has already approved the agreement, but is still being considered by Canada’s parliament. It has to pass in Canada before taking effect.

“Today we are finally ending the NAFTA nightmare and signing into law the brand-new U.S.-Mexico-Canada Agreement,” ​Trump said.

“For the first time in American history, we have replaced a disastrous trade deal that rewarded outsourcing with a truly fair and reciprocal trade deal that will keep jobs, wealth and growth right here in America.”

In the deal, the USDA said that all food and agricultural products that had zero tariffs under NAFTA will remain at zero tariffs. USMCA will create new market access opportunities for US exports to Canada of dairy, poultry and eggs.

It will also include a requirement that Canada eliminate its Class 6 and 7 milk pricing. The International Trade Commission projects that under USMCA, US dairy exports will increase by more than $314m a year.

Brody Stapel, president of Edge Dairy Cooperative, said, “This is a tremendous victory for America’s dairy farmers. In preserving the well-established markets of Mexico and Canada, and providing opportunities for even more exports there, USMCA will help bring the long-term economic stability necessary for farmers to not only survive but thrive.”

“The outlook is far brighter today for farmers’ businesses, families and employees, and our rural communities because of this historic agreement, which also benefits so many other parts of America’s economy. We have reason to celebrate.”

Mitch Davis of Davis Family Dairies in Minnesota, and Edge member, said, “USMCA is a win for Midwest dairy farmers. Not only does this deal allow the dairy community to build on two of our strongest export markets, Mexico and Canada, it helps ensure our US dairy farmers will not be harmed by Canada’s domestic management systems in the global dairy marketplace.”

John Rettler, president of FarmFirst Dairy Cooperative, said, “This is great news for US dairy farmers. It is no secret that Mexico is a top dairy export country, and this agreement will allow that trade relationship to continue to flourish. Additionally, this trade agreement also expands market access for US dairy products into Canada, a market opportunity that has long been restricted to US dairy.

“The USMCA is officially signed into law, and now it is up to our trade ambassadors to ensure this agreement is fully implemented to its full potential. We extend our appreciation to the Congressional leaders that were diligent on keeping this agreement moving forward.”

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