Kettler: Modernized trade agreement benefits Hoosier farm families

To me, 1994 feels like both yesterday and 100 years ago. Long gone are the days of landline phones and alarm clock radios. No longer do I check my pager for messages or grab the road map off the dash on my Pontiac.

So many things have changed since the early ‘90s it is only fitting the United States, Mexico and Canada agreed to update the 1994 North American Free Trade Agreement.

At the time of ratification, NAFTA was cutting edge and eliminated or reduced trade barriers, which resulted in Canada and Mexico becoming two of Indiana’s top export partners.

Over the past 26 years, technology has evolved and our political leaders saw that a new, equitable 21st century trade agreement was needed to stay cutting edge.

In 2017, negotiations started between all three countries. By the fall of 2018, the United States-Mexico-Canada Agreement was drafted and, after a few ratifications, became effective on July 1, 2020.

The new trade agreement focuses on intellectual property, digital trade, financial services, currency, labor and the environment. USMCA also boasts a detailed section on agriculture. These are just a few of the many key upgrades in this modernized trade agreement.

USMCA seems like a long discussed national issue, but in reality, it is quite local and impacts many Hoosier farmers. Through USMCA, agricultural producers have expanded market access for U.S. foods and products including dairy, eggs and poultry.

By removing the milk class restrictions, Indiana’s dairy industry can finally compete for increased market share of their products. Additionally, there are new provisions that support agricultural innovation and enhance collaboration in North America. All in all, this agreement will be a valuable tool for Hoosier producers.

Most people don’t realize this, but Indiana is the eighth largest agricultural exporting state. Over 182,000 Indiana jobs rely on trade. Some of Indiana’s top exported commodities to Canada and Mexico include hardwoods, corn, soybeans, grains and pork.

In 2016, Indiana exported $814 million in agriculture products to Canada and $161 million in agriculture exports to Mexico.

In preparation for the agreement, I had the honor of accompanying Lt. Gov. Suzanne Crouch on trade missions to both Canada and Mexico. These two missions opened opportunities for Hoosier agribusiness leaders and farmers to make lifelong connections with business owners and political leaders from Mexico and Canada in a variety of areas.

We toured facilities where they use Indiana grown products, we found ways to expand our market in both countries and we collaborated on projects that continue to this day.

We will stay aggressive and proactive on trade. This agreement is a great modernization of NAFTA and I look forward to seeing it benefit our Hoosier farming families.

USMCA will ensure Indiana’s rich agricultural heritage continues for years to come. Indiana farmers put their livelihoods into what they do, and they deserve free, open markets and reciprocal trade.

Let’s hope this agreement remains fair and open generation after generation. And who knows what is in store for the next 26 years? Perhaps we will look back and laugh at our tiny cell phones, beloved cars and wireless ear buds.

Bruce Kettler is the director of the Indiana State Department of Agriculture.