Barriers to Ratifying New USMCA Agreement Coming Down

(LUBBOCK, TX) Barriers to ratifying the new U.S., Mexico, Canada free-trade agreement – also known as USMCA – appear to be coming down. Even though leaders from all three countries signed the pact, intended to replace the 25-year old North American Free Trade Agreement or NAFTA, U.S. tariffs on steel and aluminum had led to retaliatory tariffs on U.S. pork and beef from the neighboring countries. However, a recent announcement by the Trump Administration calling for an end to the tariffs has been met by optimism. Both Canada and Mexico agreed to end their tariffs and it paves the way for Congress to consider the new agreement. Though modernizing NAFTA will not provide substantial benefits to agriculture, it will provide benefits to other U.S. industries, including the automotive sector. The agreement will also provide a new framework for business that incorporates digital technology and a better path forward when dealing with violations by participating countries.