Trade with Mexico and Canada delivers significant economic benefits to rural communities across the U.S., according to a new economic analysis released by the Agricultural Coalition for the United-States-Mexico-Canada Agreement (USMCA).
During a press conference in Washington, D.C., coalition members highlighted the findings and urged leaders of the U.S., Canada and Mexico to renew and further strengthen USMCA as the agreement enters its formal review period.
“Our analysis shows that USMCA is a powerful driver for employment, investment and long-term competitiveness in the U.S. agricultural sector,” said Krista Swanson, chief economist for the National Corn Growers Association, a member of the coalition. “While the agreement is due for a few targeted improvements, overall, it is critical to the farm economy and a key part of rural America’s success and resilience, particularly during tough economic times like we are in now.”
Under the terms of the agreement, the U.S., Canada and Mexico must begin a formal review of USMCA by July. As part of the process, the three countries will determine whether to renew the agreement, make targeted updates, terminate or shift to annual consultations.
This economic impact analysis uses a 2024 base-year model to evaluate the impact of U.S. agricultural and seafood exports to Canada and Mexico under USMCA.
Among the findings:
• Agricultural and seafood exports to Canada and Mexico generated $149 billion in total economic output, supporting nearly half a million jobs and $36 billion in wages.
• Every $1 in industry exports under USMCA drove an additional $2.45 of supported economic activity in the U.S.
• USMCA-related agricultural and seafood trade contributed $64 billion to U.S. GDP and supported $13 billion in federal, state and local tax revenue.
The analysis also examined the economic benefits of USMCA across key agricultural commodities. During the press conference, coalition members highlighted how the agreement supports growth, stability and market access in their respective sectors.
“Mexico is a very lucrative market for America’s dairy farmers, and Canada too represents important export sales as well as the opportunity for more growth,” said National Milk Producers Federation and U.S. Dairy Export Council Executive Vice President for Trade Policy and Global Affairs Shawna Morris. “USMCA is vital to our ability to trade with both partners. We urge the president to renew the agreement with targeted changes that will make it even more robust and helpful to farmers.” — Agricultural Coalition for USMCA
