Senator Joni Ernst (R-IA), a member of the Senate Committee on Agriculture, Nutrition and Forestry and Chairman of the Rural Development and Energy Subcommittee, issued the following statement in regard to the Trump Administration’s announcement today that the U.S., Canada and Mexico have reached a three-way trade agreement:
“This trade deal is welcome news for Iowa farmers and ranchers, who for too long have suffered from the ongoing trade disputes and plummeting commodity prices. President Trump is making good on his promise to get deals done that will boost confidence, provide certainty and unleash optimism across farm country in Iowa and the rest of the U.S.
“Mexico, Canada and the U.S. make up one of the most competitive and successful regional economic platforms in the world. I’ve been pushing the Administration to finalize pending trade deals, and they have done just that; I look forward to reviewing the deal in full, and understanding its impact on Iowa’s economy including manufacturing and other industries.”
On Monday, October 1, 2018, the Trump Administration announced the United States-Mexico-Canada Agreement (USMCA), a renegotiation of the 24-year-old North American Free Trade Agreement (NAFTA), with modern provisions representing a 21st century, high-standard agreement. USMCA seeks to rebalance the countries’ trade to better serve the interests of American workers, farmers, ranchers and businesses.
Specific to Agriculture:
· Food and agriculture will trade more fairly, including dairy and wheat: Canada will eliminate its “Class 7” program that allows low-priced dairy ingredients to undersell United States dairy products in Canada and in third country markets. Canada also will provide equal treatment when assessing the quality of imported wheat.
· U.S. farmers will have new access to Canadian ag markets: Canada will provide important new access for the full range of United States dairy products, eggs and poultry.
· New standards will strengthen ag trade: The new agreement sets unprecedented standards for agricultural biotechnology, establishes commitments to reduce trade-distorting policies and enhances rules for science-based sanitary and phytosanitary measures.