This week, the Iowa State Fairgrounds hosted one world agriculture event while another took place looking for better relations between three major trading partners. The reauthorization of the United States-Mexico-Canada trade agreement, commonly known as USMCA, was the topic in Des Moines, Iowa.
This week, the Iowa State Fairgrounds hosted one world agriculture event while another took place looking for better relations between three major trading partners. The reauthorization of the United States-Mexico-Canada trade agreement, commonly known as USMCA, was the topic in Des Moines, Iowa.
Transcript
This week, the Iowa State Fairgrounds hosted one world agriculture event while another took place looking for better relations between three major trading partners. The reauthorization of the United States-Mexico-Canada trade agreement, commonly known as USMCA, was the topic in Des Moines, Iowa.
Randy Miller, Iowa Soybean Association: “It's just do no harm. This. This agreement works like it is. It's free, reciprocal, and everything flows back and forth. Do no harm and and reinstate it for the 16 years so that we have the certainty.”
The USMCA went into effect in July of 2020, with a provision for review and adjustment in 2026. Just last week American and Mexican trade officials initiated their review process together ahead of the July deadline.
Ag industry speakers advocated for renewal of the trade pact with minimal changes.
Julie Kenney, Agribusiness Association of Iowa: “The other part is this when we're in a challenging economy, I think people are craving certainty and to have a stable, predictable, trade arrangement with our two largest trading partners and our neighbors is so incredibly critical. And so at a time when when things are tough, I think it's even more important that we have that certainty for the next 16 years to know what are the rules of the road and know that we have, access to those markets and they have access to, to our market.”
The tariff actions of President Trump have caused friction between the United States and its neighbors, and both Mexico and Canada have charged the US of being in violation of the pact.
Advocates of freer trade in North America focused on the advantages of friendly relationships.
Julie Kenney, Agribusiness Association of Iowa: “We do get over 85% of our potash from Canada. Canada is sitting on the largest, potash, reserves in the world. And so, having a neighbor that has that vast resource is is critically important to Iowa farmers, to our wholesalers and manufacturers and retailers as well.”
The trilateral agreement also creates leverage over other grain producers in the hemisphere.
Christopher Pudenz, Iowa Farm Bureau Federation: “Regarding, you know, our biggest competitor agriculturally, internationally right now is Brazil. You know what Brazil doesn't have with Mexico? Some sort of free trade agreement like USMCA. And so it, you know, reviewing and renewing and maintaining this USMCA relationship is really, really important for keeping, Brazil, a step behind us in a market like Mexico.”
For Market to Market, I’m Peter Tubbs
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