Ag Groups Urge Full Extension Of USMCA To Protect Reliable Export Markets
Brownfield
A pair of commodity groups say the USCMA agreement is critical to providing reliable markets for American ag goods.
Dave Walton, a farmer from Iowa and director with the American Soybean Association says the deal matters now more than ever.
“As a farmer we are making decisions about what to plant for next year, and we’re under a margin squeeze. Commodity prices are low and input prices are rising and we’re looking for any stability in the marketplace.”
He tells Brownfield it’s helped the U.S. maintain market share. “With our trade relationship with China being strained right now, we want to make sure the current trading partners that we have that we continue to strengthen those relationships. USCMA has been an extremely important of that.”
And, Walton says, USCMA helps limit retaliatory tariffs and the impact they have on ag exports.
Walton and the National Corn Growers Association testified before the Office of the U.S. Trade Representative on Wednesday.
Nancy Martinez, director of public policy with trade and biotechnology, with NCGA tells Brownfield it’s critical that Mexico remains the largest export market for the U.S. even if there are disagreements. “We also had a very key test of the agreement’s tools during the dispute settlement process with Mexico’s decree banning biotech corn. We won the dispute handedly and then Mexico withdrew the Presidential decree.”
She says a benefit often overlooked is the efficiencies that are built in. “When approvals are granted in one country and with automatic approvals in both, then the seamless nature of transportation, that all trickles down into financial savings for farmers.”
Martinez says would like the renegotiated agreement to include a ban on non-science-based reasoning and improvements to Mexico’s ethanol regulations.
Both groups would like the Administration to approve a full 16-year extension of the deal.