North American ag industry pushes for USMCA renewal

Nearly 160 food and agriculture organizations from the United States, Canada and Mexico have called on their governments to renew and strengthen the US-Mexico-Canada Agreement (USMCA) ahead of the pact’s mandatory six-year review.

The reassessment, scheduled for July 1, could result in a 16-year extension, termination of the agreement, or annual consultations if the parties cannot reach consensus.

The group sent a joint letter to US Trade Representative Ambassador Jamieson Greer, Canada-US Trade Representative Dominic LeBlanc, and Mexico Secretary of the Economy Marcelo Ebrard. In the document, the coalition argues that the agreement remains critical to maintaining the competitiveness and stability of North America's integrated agricultural sector.

The Agricultural Coalition for USMCA, launched originally by the National Corn Growers Association, helped organize the effort. 

The signatories, who represent a broad cross-section of the North American food and agricultural value chain, said continued support for the agreement would provide much-needed certainty during a period of economic volatility.

Trade and supply chain protection under the USMCA

Agricultural and business organizations across North America view the agreement as essential to preserving efficient trade flows and regional competitiveness, the letter further stated.

“Over the past 20 years [USMCA] has made North America the most food-secured region in the world,” the letter noted. 

The North American market encompasses more than 500 million consumers, generates approximately $30 trillion in gross domestic product, and supports about $1.7 trillion in annual trade volume.

The letter also highlighted what signatories described as regulatory benefits resulting from the agreement, including reduced trade barriers, greater regulatory transparency and science-based treatment of agricultural commodities and products.

“Without this trade agreement, North America is more vulnerable to countries that employ trade-restrictive policies that negatively impact the movement of food from areas of surplus to deficit,” the letter said. “[USMCA] is key to maintaining a competitive global advantage that reduces reliance on distant supply chains and encourages investment across the region.”

The organizations also pointed to ongoing challenges facing the food and agriculture sector, including elevated production costs, low commodity prices, natural disasters, and geopolitical instability.

“[USMCA] creates an environment that can mitigate trade challenges instead of spurring escalation,” the letter said.

Read the full letter below.

*All images are referential.

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