September 18, 2024

USMCA signing increases optimism

WASHINGTON — Indiana Farm Bureau’s oncoming Young Farmers and Ag Professionals state chair Deidra Gottbrath was present for the signing of the United States-Mexico-Canada Agreement on Jan. 29 at the White House.

“It was an honor to have been invited to the White House to witness the signing of the USMCA,” she said. “It was a once-in-a-lifetime experience. Healthy trade relationships with our neighboring countries are essential for the success of Indiana farm families, like mine in Washington County.”

The USMCA trade deal is expected to increase agricultural exports from the United States by $2 billion and result in an overall increase of $65 billion in gross domestic product.

“Of course, it will take time for new deals to go into effect, which will result in increased sales for farmers, but we’re hopeful that in the end this agreement will increase exports for farmers in Indiana and across the country,” said Gottbrath, who raises row crops with her family and also is a critical care nurse.

Canada will increase quotas on U.S. dairy products, benefiting American dairy farmers by $242 million. Canada also will treat wheat imports the same as domestic wheat for grading purposes.

Mexico also has agreed that all grading standards for ag products will be non-discriminatory. The agreement also enhances science-based trading standards among the three nations.

Step By Step

The signing of USMCA by President Donald Trump increases hopes that 2020 will begin a stronger decade for America’s farmers and ranchers.

“There is definitely increased optimism on farms and ranches across America and we’re grateful for the advances, but we’re also realists eager to see results — especially for our dairy and wheat producers,” said American Farm Bureau President Zippy Duvall.

“We know it will take time for the new deals to go into effect and translate into increased sales. We’re eager to get back into full swing supplying safe, high-quality food and agricultural products around the world.”

President Trump’s signature was the final step in enacting the agreement in the United States. Mexico approved the USMCA last year.

Canada must still ratify the pact, which is expected to occur in the next few months. The agreement will take effect 90 days after all countries have approved it.

USMCA comes on the heels of a string of trade successes. The United States-Japan Trade Agreement signed last fall went into effect in January, and the China Phase 1 Agreement signed in January goes into effect in mid-February.