Dec 19 - US House Passes USMCA - Farmer Organizations Respond

Secretary Perdue Statement on House Passage of USMCA

U.S. Secretary of Agriculture Sonny Perdue issued the following statement after the House of Representatives passed the U.S.-Mexico-Canada Agreement (USMCA) by a bipartisan vote of 385-41.

“I’ve long said that support for USMCA crosses political parties, the bipartisan passage of the agreement today is proof of that,” Secretary Perdue said. “I am pleased the House finally brought this agreement to a vote and encourage quick passage in the Senate. President Trump delivered on his promise to replace NAFTA and USMCA is a huge success for America’s farmers and ranchers. This agreement will unleash the bounty of America’s agricultural harvest to two of our largest trading partners in the world and it is critical to the success of rural America.”
 
Background:
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.

Earlier this year, nearly 1,000 American food and agriculture associations and companies announced their support for USMCA and the National Association of State Departments of Agriculture signed a letter to Congressional leadership urging them to ratify USMCA.

In September, all former U.S. Secretaries of Agriculture since President Reagan’s Administration announced support for USMCA. In a letter to Congressional leaders, former Secretaries John Block (Reagan), Mike Espy (Clinton), Dan Glickman (Clinton), Ann Veneman (W. Bush), Mike Johanns (W. Bush), Ed Shafer (W. Bush), and Tom Vilsack (Obama) underscored the importance of passing USMCA saying, “We need a strong and reliable trade deal with our top two customers for U.S. agriculture products. USMCA will provide certainty in the North American market for the U.S. farm sector and rural economy. We strongly support ratification of USMCA.”

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.



Sasse Statement on House Passage of USMCA

U.S. Senator Ben Sasse, an outspoken advocate for Nebraska agriculture and trade, issued the following statement after the House of Representative finally passed the USMCA trade agreement after more than a year of stonewalling.

"About dang time. Speaker Pelosi's priorities are seriously out of whack. She wasted a full year stonewalling USMCA because she didn't want to give President Trump and Nebraska's farmers and ranchers a win. But we've been working hard to get this deal done. Today, we finally got that vote in the House - and that's a huge win for ag in our state. This is big."



Smith Statement on House Passage of USMCA

Congressman Adrian Smith (R-NE) released the following statement after the House of Representatives passed legislation to enact the United States–Mexico–Canada Agreement (USMCA) today:

“After much hard work and negotiations by the administration, I am incredibly pleased were able to come together to enact this trade agreement which will greatly benefit Nebraska’s, and America’s, producers, consumers, and businesses small and large.

“President Trump correctly determined NAFTA needed to be modernized for the 21st century, and USMCA meets that standard by maintaining existing trade opportunities, creating new ones, and implementing enforcement standards which ensure our partners follow through on the promises they have made. This historic trade agreement is a sign of good things to come for American trade.”

Smith, a senior member of the Committee on Ways and Means, which has jurisdiction over trade, travelled to Ottawa and Mexico City to attend USMCA negotiations and served on the Republican whip team supporting USMCA enactment.



Ricketts Applauds House Passage of USMCA

Today, Governor Pete Ricketts issued the following statement upon ratification of the U.S.-Mexico-Canada Agreement (USMCA) by the U.S. House of Representatives.

“Today’s passage of USMCA by the U.S. House of Representatives is a big victory for American farmers and working families,” said Gov. Ricketts.  “This agreement gives Nebraskans certainty about two of our most important international markets, and will expand opportunity for our dairy farmers.  Thank you to Nebraska’s federal delegation for their tireless work to get this deal through Congress.”



Statement by Steve Nelson, President, Regarding House Vote on United States-Mexico-Canada-Agreement (USMCA)

“Today’s vote in the House moves us one step closer to bringing much needed stability in our trade relations with two of our most important trade partners in Mexico and Canada. While this important vote was long overdue, it’s welcomed news in farm country. We thank Congressman Fortenberry, Bacon, and Smith for their votes and support for USMCA. Securing USMCA is one of the top items on the “to-do” list for expanding markets for our homegrown agriculture products. We encourage the Senate to move swiftly to follow suit.”



Naig makes statement on USMCA passing through the House

Iowa Secretary of Agriculture Mike Naig released the following statement regarding the U.S. House of Representatives passing the U.S.-Mexico-Canada Agreement (USMCA).

"Passing of the USMCA through the U.S. House of Representatives is one step closer to ratifying this much-needed trade agreement," said Secretary Naig. "As our largest trading partners, Canada and Mexico purchase more than $10.3 billion in agricultural exports each year. This supports over 83,000 Iowa jobs, gives farmers more market access to sell their products, and allows consumers to save money on imported goods."



USMCA Misses the Mark for U.S. Farmers and Ranchers

Today, the U.S. House of Representatives voted to approve the U.S., Mexico, and Canada trade agreement (USMCA).   Lincoln, NE-based The Organization for Competitive Markets (OCM) issued the following statement:

OCM is gravely disappointed that the economic viability of America’s farmers and ranchers has once again been left out of the trilateral trade agreement. Like its predecessor, NAFTA, USMCA fuels the consolidation and monopolization of food and agriculture, and is harmful to the survivability of America’s independent farmers and ranchers.

OCM opposes the ratification of USMCA. Our concern is not so much for what USMCA does, but rather what it fails to do. NAFTA provided windfall profits for global corporations at the expense of farm and ranch families, and USMCA does not tilt the scales of justice back. It does not address excessive agriculture and food market concentration, the overproduction of milk, the disparity in grain pricing, nor does it provide the U.S. with mandatory Country of Origin Labeling authority.

The U.S. Senate is expected to take up USMCA in January. Mexico has approved the agreement and Canada is likely to hold a vote in late January.



IPPA Applauds House Action on USMCA

The Iowa Pork Producers Association supports actions taken today by the U.S. House when it passed the U.S.-Mexico-Canada Agreement (USMCA).

"Exports are important to Iowa and U.S. pig farmers, and that's why we applaud the U.S. House for taking action to ratify the USMCA agreement negotiated by the Trump Administration. We especially want to thank all four of Iowa's U.S. House of Representative members for voting for the agreement," said Trent Thiele, Elma. Thiele is president of the Iowa Pork Producers Association.

"Our industry has worked many years in developing valuable international trading relationships that have fueled Iowa's rural economy and helped offset the U.S. trade deficit. It is important to me and Iowa's other pig farmers that we return to those good working relationships we have had with Mexico and Canada."

When combined, the joint Mexico and Canada market has consistently purchased 40 percent of U.S. pork exports when there was a trade agreement between the three countries.

"This agreement will protect Iowa's pork producers from being caught in the middle, as we were in 2018 and through the first half of 2019. Economic estimates have said we lost $12 per pig during that time period because of tariff issues," Thiele said.

"We now encourage the U.S. Senate to work quickly to also approve the USMCA," Thiele said.



NCGA: House Passes USMCA, Delivers a Win for Agriculture

National Corn Growers Association President Kevin Ross today thanked members of the U.S. House of Representatives for their bipartisan approval of the United States-Mexico-Canada Agreement (USMCA). Ross made the following statement.

“Corn farmers have been working toward this vote for nearly a year, sending emails, having meetings and making phone calls to their representatives in support of USMCA. All of agriculture should be incredibly proud to see these efforts pay off with such a strong, bipartisan vote. We wouldn’t be at this stage in the ratification process without the hard work of individual farmers across the country. Ratifying USMCA has been NCGA’s top legislative priority because Mexico and Canada are the U.S. corn industry’s largest, most reliable markets.

“NCGA thanks members of the House for their votes in support, along with President Trump and his administration’s continued efforts to come to a bipartisan consensus. It’s now up to members of the U.S. Senate to quickly pass USMCA in the new year.” 



U.S. Dairy Industry Praises House Passage of USMCA, Urges Senate Action

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) praised the House of Representatives for today approving legislation implementing the United States-Mexico-Canada Agreement (USMCA).

“USMCA will bring tangible benefits to the U.S. dairy industry by upgrading trade rules, opening the Canadian market to U.S. dairy exports and preserving our valuable market access in Mexico,” said Tom Vilsack, president and CEO of USDEC. “Today’s bipartisan vote is indicative of the need to immediately secure these benefits for dairy and all of agriculture.”

“Today’s vote brings us one step closer to finalizing USMCA and securing a more certain future for America’s farmers and ranchers,” said Jim Mulhern, president and CEO of NMPF. “It is imperative that the Senate act now to finalize USMCA.”

Ambassador Robert Lighthizer worked diligently alongside members of Congress to address outstanding concerns and deliver an improved trade pact. The House passage of USMCA and its broad range of support is a testament to their efforts.

USMCA makes important changes to Canada's trade-distorting policies, reforms Canada's controversial dairy pricing system and provides exclusive access to the Canadian market for U.S. farmers and manufacturers. The trade deal also strengthens our relationship with Mexico and establishes new protections for common cheese names, using a combination of approaches to protect the continued use of a number of generic cheese terms, such as parmesan and feta.



RFA Applauds House Approval of USMCA

The Renewable Fuels Association today lauded a vote by the U.S. House of Representatives approving the United States-Mexico-Canada Agreement (USMCA), a crucial trade pact that will benefit U.S. ethanol producers and rural economies across the nation. New fact sheets released today by RFA highlight the significance of the Canadian and Mexican export markets to U.S. ethanol producers. RFA President and CEO Geoff Cooper offered the following statement:

“America’s ethanol producers are encouraged by the approval of USMCA in the House, and we urge the Senate to act swiftly to ratify the agreement. Canada and Mexico are among our most important and reliable export markets for both ethanol and distillers grains, and we look forward to strengthening our trading relationship with the two countries. USMCA is a good deal for the U.S. ethanol industry, the farmers who support us, and our industry’s partners in Canada and Mexico.”

In 2018, Canada ranked second for ethanol exports from the United States, purchasing 350 million gallons, and ranked in the Top 10 for distillers grains. Canada has imported more ethanol from the United States since 2012 than any other country in the world. Click here for more information.

Mexico was the top export market for U.S. distillers grains in 2018, importing more than 2 million metric tons, and ranked in the Top 10 for ethanol exports.



NCBA Urges Senate to Swiftly Follow House's Lead

National Cattlemen’s Beef Association (NCBA) President Jennifer Houston issued the following statement regarding the U.S. House of Representatives' approval of the U.S.-Mexico-Canada Agreement (USMCA) by a vote of 385-41:

"Today was a crucial win for all U.S. beef producers and a reassurance that U.S. beef will continue to have duty-free access to Canada and Mexico," said Houston. "A big thank-you goes to the Trump Administration and every lawmaker who voted to approve USMCA. Of course, there is still more work left to do, so I urge the Senate to swiftly pass the USMCA and send it to the President's desk."



Soy Growers Applaud House Passage of USMCA
First hurdle towards ratification acheived with 385-41 vote!

Soy growers, other agriculture and business groups have rallied collectively for months to ensure the House of Representatives would pass the “new NAFTA” before the fade of 2019. Today, that critical step has happened. The American Soybean Association (ASA) expresses its strong appreciation to Speaker Pelosi and the House for passing the U.S.-Mexico-Canada Agreement (USMCA).

“This is a win for soybean farmers and a win for the Administration and Congress. Their efforts to pass a free trade deal that can restore certainty and stability to an important export market for our farmers demonstrates that they can accomplish great things working in unison,” said Bill Gordon, soy grower from Worthington, Minn., and ASA president. “We express our thanks to the House of Representatives for this momentous act. We now look to the Senate to take up and pass USMCA in early 2020.”

Mexico is the #2 market for whole beans, meal and oil, and Canada is the #4 buyer of meal and #7 buyer of oil for U.S. soybean farmers, making the trade agreement essential to sustaining the growth realized in those two countries under the North American Free Trade Agreement (NAFTA). Under NAFTA, U.S. soybean sales to Mexico quadrupled and to Canada doubled.



USMEF Statement on House Approval of USMCA

Today the U.S. House of Representatives approved implementing legislation for the U.S.-Mexico-Canada Agreement (USMCA).  U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:

USMEF applauds the House of Representatives for approving the implementing legislation for USMCA and the bipartisan effort by Congressional leaders and the Trump administration to bring USMCA to a House vote.

Ratification of USMCA is an important step in solidifying trade relations with Mexico and Canada, which are critical destinations for U.S. pork, beef and lamb. This agreement will bolster the United States' position as a reliable supplier to two leading markets that currently account for about one-third of all U.S. red meat exports. We look forward to the Senate taking up this legislation as soon as possible and completing the ratification process.



 ACE: Passing USMCA important to building upon key trade partner relationships

Today, the U.S. House of Representatives passed the U.S.-Mexico-Canada Agreement (USMCA), which was signed by the United States, Mexico and Canada last November to replace the North American Free Trade Agreement (NAFTA). The new agreement solidifies a multi-billion-dollar export market while providing more certainty to farmers and instilling confidence in other nations that the U.S. is a reliable partner and supplier to help U.S. agriculture remain competitive for years to come. ACE CEO Brian Jennings released the following statement in response to today’s announcement:

“Canada is the most reliable export market for U.S. ethanol over the course of time, while Mexico continues to be the largest buyer of U.S. Distillers’ Dried Grains (DDGs) and holds great potential for increasing U.S. ethanol exports. While USMCA doesn’t directly address ethanol specific trade provisions, the passage of this agreement is key to maintaining positive relationships with our neighbors to the north and south and future opportunities in these markets for ethanol, the fastest-growing agricultural export in the U.S.”



NGFA commends House lawmakers for supporting USMCA 

The National Grain and Feed Association (NGFA) commended House lawmakers for voting 385-41 in favor of the U.S.-Mexico-Canada Agreement (USMCA).

“Having a sound and competitive trade agreement with Mexico and Canada is critical to the continued economic success of U.S agriculture and for the U.S. economy as a whole,” said NGFA President and CEO Randy Gordon. “The USMCA preserves or expands upon critical market access for U.S. agricultural products in the North American market and provides a 21st century blueprint for future trade agreements.

USMCA would further enhance seamless U.S. food and agricultural trade with Mexico and Canada and would deliver an additional $2.2 billion in U.S. economic activity, he noted.

“NGFA particularly appreciates the dedication and persistence of U.S. Trade Representative Robert Lighthizer and House leadership to overcome final hurdles to reach this milestone,” Gordon said. “We urge the Senate to continue progress on this vital agreement for the United States and the entire North American region by ratifying USMCA as soon as possible.”

The USMCA trade agreement would preserve or expand upon critical market access for U.S. agricultural products in the North American market. In addition to maintaining a tariff-free environment for most agricultural goods, USMCA also would address non-tariff barriers that are paramount among the current global challenges that distort and slow cross-border trade flows. Among other benefits, USMCA would: Facilitate cross-border trade flows through higher levels of regulatory coherence and cooperation; implement timelines and notifications for adverse import checks; reduce the likelihood of trade disruptions in products of agricultural biotechnology; apply technical consultations for sanitary and phytosanitary (SPS) disputes and create a mechanism for expeditiously resolve cross-border SPS issues on individual shipments; and require that SPS standards be grounded in science, based on proper risk assessments and implemented using prudent risk-management techniques.



R-CALF USA Statement on the House Passage of USMCA

R-CALF USA, the nation's largest producer-only cattle trade association that lobbies on behalf of America's cattle farmers and ranchers issued the following statement on today's passage of the United States Mexico Canada Agreement (USMCA) in the U.S. House of Representatives. The USMCA, same as its predecessor the North American Free Trade Agreement (NAFTA), does not require beef derived from Mexican or Canadian cattle to bear a label of origin at retail sale in our domestic marketplace. 

"We are extremely disappointed but not at all surprised that it is business as usual in the House of Representatives. They continue to support the financial self-interests of multinational corporations while harming American consumers and independent cattle producers.

"But it isn't over yet, we will now shift our focus on the Senate and meanwhile, we know that our efforts have significantly elevated the awareness that mandatory Country-of-Origin Labeling (COOL) for beef must be restored and we will not rest until it is.  

"The longer Congress and the president stall to reinstate mandatory COOL for beef more and more of America's largest segment of agriculture, the U.S. cattle industry along with economic opportunities for independent cattle producers, will be transferred to other countries; thus depriving rural America of its economic benefits.



USMCA Is a Victory for Farmers and Ranchers
American Farm Bureau Federation President Zippy Duvall

“Farm Bureau commends the House for approving the United States-Mexico-Canada Agreement. It was a bipartisan effort as shown by the overwhelming 385 to 41 vote, and we appreciate the work of members of Congress on both sides of the aisle in getting this deal done.

“This trade agreement could not come at a more critical time for U.S. agriculture. Farmers and ranchers have been hit with a perfect storm of low commodity prices, weather disasters, trade disruptions and a severe downturn in the farm economy. The USMCA will provide continuity in the growth of the North American market and will strengthen our trading relationships with Canada and Mexico, which are our number-one and number-two export markets, respectively.

“We are hopeful that USMCA can be a model for future U.S. trade agreements, as these modernized rules will be a strong guide for addressing continuing issues. We urge the Senate to quickly approve the USMCA.”

USMCA BACKGROUND
Designed to replace the North American Free Trade Agreement, the USMCA builds on important trade relationships in North America.
-    The agreement is expected to increase U.S. ag exports by $2 billion and result in a $65 billion increase in gross domestic product.
-    The agreement will provide new market access for American dairy and poultry products while preserving the zero-tariff platform on all other ag products.
-    In particular, the agreement gives U.S. dairy products access to an additional 3.6% of Canada’s dairy market – even better than what was proposed in the Trans-Pacific Partnership trade agreement.
-    U.S. wheat will receive fairer treatment, thanks to Canada’s agreement to grade our wheat no less favorably than its own.
-    Mexico and the United States have also agreed that all grading standards for ag products will be non-discriminatory.
-    Additional provisions enhance science-based trading standards among the three nations as the basis for sanitary and phytosanitary measures for ag products, as well as progress in the area of geographic indications.
-    The agreement also includes measures that address cooperation, information sharing and other trade rules among the three nations related to agricultural biotechnology and gene editing.