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.
In the eyes of the Trump administration, the new trade deal binding the U.S., Mexico and Canada is a model for future agreements, and nowhere is that more evident than in the pact's Agricultural Biotechnology section.
The successful renegotiation of the North American Free Trade Agreement could turn out to be a hollow victory for some of the largest U.S. cheese companies if the Trump administration doesn’t pull back its steel and aluminum tariffs on Mexico.
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.
Yet another deadline is looming for U.S. and Canadian negotiators this week as they struggle to find compromises for a deal to make the North American Free Trade Agreement whole again and avert the unknown territory of trying to convert a three-party pact into a two-party accord.
The Trump administration remains adamant that Canada shut down its Class 7 milk pricing program as part of an overall deal to rewrite the North American Free Trade Agreement, USDA Secretary Sonny Perdue told reporters today.