USMCA Signing Is A Win for Oklahoma

Jan 29, 2020
Agriculture
Press

Washington, D.C. – Congressman Frank Lucas (OK-03) released the following statement after President Trump officially signed the United States-Mexico-Canada Agreement (USMCA) into law:

“Today is a historic day for Oklahoma’s farmers, ranchers, and manufacturers. With what started out as a campaign promise, today, President Trump signed into law the USMCA- a critical agreement modernizing and rebalancing the trade relationship our nation has with Canada and Mexico.

Trade with Mexico and Canada supports over 112,000 Oklahoma jobs and we export over $2.4 billion worth of goods and services to our neighbors to the North and South annually. By increasing market access for Oklahoma’s agriculture producers and ensuring a level playing field for our businesses and workers, the USMCA is sure to foster more opportunities for Oklahomans.

The strength of our great state can be seen through the long days our farmers and ranchers spend in the fields or by the labor of our manufacturers. I applaud President Trump and his Administration for fulfilling his promise to the American people and renegotiating this fair and reciprocal agreement and I look forward- as do my fellow farmers and ranchers- to Canada and Mexico fully implementing this historic agreement.”

Background:

According to a United States International Trade Commission estimate, the United States-Mexico-Canada Agreement would raise U.S. real GDP by $68.2 billion and U.S. employment by 176,000 new jobs. The Commission also estimates that U.S. exports to Canada and Mexico would increase by $19.1 billion and $14.2 billion, respectively.

USMCA will advance United States agricultural interests in two of the most important markets for American farmers, ranchers, and agribusinesses. This high-standard agreement builds upon our existing markets to expand United States food and agricultural exports and support food processing and rural jobs.

Canada and Mexico are our first and second largest export markets for United States food and agricultural products, totaling more than $39.7 billion food and agricultural exports in 2018. These exports support more than 325,000 American jobs.

All food and agricultural products that have zero tariffs under the North American Free Trade Agreement (NAFTA) 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.

Key Provision: Increasing Dairy Market Access

  • America’s dairy farmers will have expanded market opportunities in Canada for a wide variety of dairy products. Canada agreed to eliminate the unfair Class 6 and 7 milk pricing programs that allowed their farmers to undersell U.S. producers.

Key Provision: Biotechnology

  • For the first time, the agreement specifically addresses agricultural biotechnology – including new technologies such as gene editing – to support innovation and reduce trade-distorting policies.

Key Provision: Geographical Indications

  • The agreement institutes a more rigorous process for establishing geographical indicators and lays out additional factors to be considered in determining whether a term is a common name.

Key Provision: Sanitary/Phytosanitary Measures

  • The three countries agree to strengthen disciplines for science-based measures that protect human, animal, and plant health while improving the flow of trade.

Key Provision: Poultry and Eggs

  • U.S. poultry producers will have expanded access to Canada for chicken, turkey, and eggs.

Key Provision: Wheat

  • Canada agrees to terminate its discriminatory wheat grading system, enabling U.S. growers to be more competitive.

Key Provision: Wine and Spirits

  • The three countries agree to avoid technical barriers to trade through non-discrimination and transparency regarding sale, distribution, labeling, and certification of wine and distilled spirits.

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