News USMCA
NAFTA 2.0 by the Senate, a boost for farmers in the US
The free trade agreement between the US, Canada and Mexico, which goes by the name USMCA, is almost finished. A large majority of the US Senate approved the deal last week. Mexico has already given the green light and Canada is also likely to agree.
President Donald Trump has yet to sign the treaty himself. But given he is a big supporter of the deal, that probably won't cause any problems. The agreement is the second boost in a short time for American farmers. Last week, the US also signed phase 1 of the trade deal with China, which agricultural export very likely to give you a boost.
Positive for meat and dairy exports
The USMCA, also known as NAFTA 2.0, is also likely to benefit US agricultural exports. At least that's what Sonny Perdue, the Secretary of Agriculture in the US, claims. Representatives of the meat sector are therefore pleased, given that neighboring countries Canada and Mexico have important export destinations for beef, pork, chicken and lamb.
The dairy sector is also pleased. US dairy exports (particularly cheese and milk powder) are expected to increase by $314 million annually as a result of the treaty. For example, Mexico is the most important sales market and the deal removes trade barriers. In addition, Canada is also opening the door further to American dairy. Mexico and Canada also benefit in turn.
Years of negotiations
Negotiations between the US, Mexico and Canada have lasted for years. Shortly after Trump took office, he canceled NAFTA, which he called the worst trade deal ever. Shortly afterwards, the countries entered into consultations for a new treaty. In October 2018, this led to a provisional agreement. However, it took a long time to smooth out the last folds.
Canada has to wait for a final agreement. From January 27, the Canadian government will only be back from the winter break. Although the government of President Justin Trudeau does not have a majority, it is expected that Canada will agree to the deal.
Wouter Job
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