USMCA: How Do Trade Agreements Affect Your Operation?
10 December 2019 Even as the U.S. House of Representatives announced articles of impeachment for Donald Trump, the leader of that group handed the president a victory declaring support for the United States-Mexico-Canada Agreement (USMCA). A congressional vote could be held as early as next week.
The agreement, which was negotiated over the past couple years to replace the North American Free Trade Agreement. While many argue the new USMCA is not significantly different than its predecessor, an agreement will deliver some needed stability.
Several associations responded, generally positively to the news. Iowa Secretary of Agriculture Mike Naig released the following statement in response to the announcement on the agreement reached on USMCA.
“The announcement that Congress and the Trump Administration have reached an agreement on USMCA is welcomed news. With Canada and Mexico being Iowa’s top two trading partners, this updated trade agreement will greatly impact our state,” said Secretary Naig. “We are one step closer and I strongly encourage the House and Senate to quickly take action to approve this deal.”
Loading ...Ohio Corn & Wheat Executive Director Tadd Nicholson issued the following statement: “2019 has been an extremely difficult year for Ohio’s corn and small grains farmers. Today’s announcement gives us a glimmer of hope that, by the end of this year, Ohio’s farmers will see much needed certainty on the horizon.”
President Trump has shown a disdain for trade agreements, or at least the ones that existed when he took office. He has shown disappointment with many of the country’s trading relationships, adding tariffs to a variety of products imported to the U.S. It remains to be seen how these various actions will play out.
With agreements generally both sides make concessions to reach an end that ultimately benefits both. Rhetoric from the Trump administration suggest the president will only be happy if the U.S. occupies a superior space or at least appears to do so. As the 400-pound gorilla, the U.S. impose its will on many countries, but one has to wonder what the long-term effects will be as other countries negotiate their own deals outside the auspices of the U.S.
We’re in for interesting times.
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