Unless the U.S. and Japan move quickly in promised trade talks, American wheat farmers stand to take significant hits in exports thanks to the swiftly approaching start of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The deals struck by the U.S., Mexico and Canada in renegotiating the North American Free Trade Agreement promise new trading opportunities for U.S. farmers, but the Trump administration’s trade wars and the tariffs that go with them more than negate the potential gains, according to a new study presented today by the Farm Foundation.
The biotech portion of the U.S.-Mexico-Canada Agreement is just one example of several new ag provisions that were added during the overhaul of the North American Free Trade Agreement – NAFTA 2.0 as some are calling it - over the past year of negotiations.
The president revealed this week he has no intention of backing off the use of tariffs – not even with allies Mexico and Canada, who are retaliating with tariffs of their own on billions of dollars of U.S. agricultural goods.
U.S. and Canadian negotiators have reached an eleventh-hour agreement assuring Canada will be part of the renegotiated North American trade pact that is to be renamed the United States, Mexico, Canada Agreement. As part of the deal, Canada agreed to eliminate its controversial Class 7 dairy pricing program.