President Trump has announced a break-through in trade negotiations with Mexico which will have a significant impact on local farmers and ranchers.
Trump is calling this new accord the U.S.-Mexico Trade Agreement and Trump has announced he will terminate the North American Trade Agreement.
Hog futures went up after reports early this morning suggested a deal with Mexico was imminent. Mexico has been the number one foreign market for U.S. pork products, but as trade negotiations lagged, Mexico imposed tariffs on U.S. pork as well as cheese in June. Representatives from the U.S., Mexico and Canada began renegotiating the terms of the North American Free Trade Agreement in August of last year, but for about a month the talks have involved only the U.S. and Mexico.
The president said negotiations with Canada will start “fairly soon.”
Canada is the state of Iowa’s number one trading partner, nearly double the market Mexico has been for Iowa exports. The trade pact Trump has announced with Mexico must be ratified by Congress. Trump indicated if a deal is reached with Canada, it might be added to this agreement with Mexico or it might be a separate, stand-alone deal.