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Agricultural News


ITC Report Underscores Importance of NAFTA and Passing USMCA for US Agriculture

Fri, 19 Apr 2019 07:54:45 CDT

ITC Report Underscores Importance of NAFTA and Passing USMCA for US Agriculture    

Today, the U.S. International Trade Commission (ITC) released its report on the economic benefits of the United States-Mexico-Canada agreement (USMCA). NAWG President and Lavon, Texas farmer Ben Scholz issued the following statement in response:

"It is critical for Congress to understand how substantial USMCA is for agriculture, especially the undervalued wheat market. As the International Trade Commission (ITC) report just assesses the USMCA agreement as compared to the status quo (NAFTA), in which U.S. wheat farmers already have free market access, it doesn't fully capture the importance of USMCA.

"Once NAFTA was implemented, U.S. wheat exports to Mexico shot up to an annual average of almost 3 million metric tons (more than 100 million bushels). This made Mexico the largest U.S. wheat importer in the world in the 2016/17 marketing year

"Additionally, USMCA captures the original intentions of NAFTA while improving some of the provisions for wheat growers. It retains tariff-free access to imported U.S. wheat for our long-time flour milling customers in Mexico. Furthermore, the USMCA makes important progress towards more open commerce for U.S. wheat farmers near the border with Canada by working to fix the broken grain grading system and making trade more reciprocal along the U.S.-Canadian border.

"The ITC report is not reflective of vast benefits USMCA will bring to agriculture. A vote for USMCA means more jobs for Americans, stronger export markets for farmers to sell their crop, and billions of dollars added to the economy."

 

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