Trump Signs USMCA, Says New Day for Trade

WASHINGTON, DC – At an outdoor ceremony at the White House Wednesday, President Trump today signed the United States-Mexico-Canada Agreement (USMCA), providing improved access to both markets for U.S. farmers and ranchers. The agreement, a replacement to a 26-year old North American Free Trade Agreement (NAFTA), will specifically give America’s dairy farmers expanded market opportunities in Canada for a wide variety of dairy products. Canada agreed to eliminate the Class 6 and 7 milk pricing programs that allowed Canadian farmers to undersell U.S. producers. Canada also agrees to terminate its discriminatory wheat grading system, which should enable U.S. growers to be more competitive in the North American market. According to USDA, Canada and Mexico are the two largest export markets for United States food and agricultural products, totaling more than $39.7 billion in 2018, and supporting more than 325,000 American jobs. All food and agricultural products that have had tariff-free access under NAFTA, will continue as such. The new agreement will create new market access opportunities for United States exports to Canada of dairy, poultry, and eggs, and in exchange will provide new access to Canada for some dairy, peanut, and a limited amount of sugar and sugar-containing products. Now that Mexico and the United States have ratified the agreement, Canda will consider USMCA but the implementation could take several more months since the three countries must show they are meeting their obligations before the clock starts ticking on an effective date.