Agriculture Secretary Sonny Perdue says of the U.S.-Mexico-Canada Agreement, farmers “are eager to see the President sign this legislation and begin reaping the benefits.”
Canada and Mexico are the first and second-largest export markets for United States agricultural products, totaling more than $39.7 billion in food and agricultural exports in 2018.
Under the agreement, all food and agricultural products that have zero tariffs under the North American Free Trade Agreement will remain at zero tariffs.
Since the original NAFTA did not eliminate all tariffs on agricultural trade between the United States and Canada, the USMCA will create new market access opportunities for United States exports to Canada of dairy, poultry, and eggs, and in exchange, the United States will provide new access to Canada for some dairy, peanut, and a limited amount of sugar and sugar-containing products.
The agreement specifically addresses agricultural biotechnology, including new technologies such as gene editing, to support innovation and reduce trade-distorting policies, and the agreement institutes a more rigorous process for establishing geographical indicators.
