The new North American trade deal has been signed. But after all the pomp and circumstance of the signing, there’s still a lot to do.
President Donald Trump, together with Mexico’s President Enrique Peсa Nieto on his last day in office and Canada’s Prime Minister Justin Trudeau, signed the U.S.-Mexico-Canada Agreement (USMCA) as planned on Nov. 30 at the beginning of the G20 Summit. The plan, sometimes called NAFTA 2.0, is set to replace the North American Free Trade Agreement (NAFTA).
“With our signatures today, we will formally declare the intention of our three countries to replace NAFTA with the USMCA a truly groundbreaking achievement. A modern-day agreement,” proclaimed Trump at the signing.
Trump went on to describe the agreement as locking in U.S. market access to Canada and Mexico and “greatly expand our agricultural exports.” He called it an “amazing deal for our farmers.”
The signing of the agreement met with praise by agricultural industry groups and politicians alike. Grain groups and senators, as well as Ag Secretary Sonny Perdue, welcomed the news.
More specifically to beef, praise for the signing was tempered with acknowledgement that there’s more to do to make U.S. beef trade whole again.
“With the signing of the U.S.-Mexico-Canada Agreement (USMCA), U.S. beef producers are one step closer to knowing that unrestricted, science-based trade will continue in North America,” said National Cattlemen’s Beef Association (NCBA) President Kevin Kester, adding that NCBA will work with members of Congress to get the agreement passed domestically.
Dan Halstrom, U.S. Meat Export Federation (USMEF) president and CEO, pointed out the ongoing tariff disputes affecting beef and pork.
“USMEF supports the Trump administration’s efforts to finalize the USMCA and to continue seeking resolution of the metal tariffs dispute with Mexico and Canada, which resulted in retaliatory duties on U.S. pork and beef. U.S. meat exports have also become entangled in trade disputes with China, so it is encouraging to see the U.S. and China return to the negotiating table. Global demand for U.S. red meat is very strong, but exports cannot reach their full potential until the retaliatory duties imposed by Mexico, China, and Canada are removed.”
The metal tariffs issued by the U.S. against most nations, including Canada, was a sticking point for Trudeau at the signing of the agreement, which he repeatedly referred to as NAFTA.
Referencing the recent announcement of General Motors plant closures in both Canada and the U.S., Trudeau addressed Trump, saying, “Donald, it’s all the more reason why we need to keep working to remove the tariffs on steel and aluminum between our countries.”
On to Congress
The USMCA must now pass through each country’s legislative process. For the U.S., that means getting passed through Congress. Both congressional Republicans and Democrats voiced opposition to certain elements included in the original version of the agreement.
As reported last week, 40 House Republicans voiced their concern about anti-discrimination language related to sexual orientation and gender identity in the labor chapter of the agreement. Democrats in the House and Senate have variously expressed concern over what they see as insufficient environmental protections. Both sides are expected to withhold votes on the trade agreement over their respective concerns.
During remarks to the press gaggle onboard Air Force One immediately following his G20 meeting with Chinese President Xi Jinping, Trump told reporters he “will be formally terminating NAFTA shortly.” Pressed on the timing of the termination, Trump spoke repeatedly off the record, but at one point spoke on the record offering a six-month timeline.
Trump positioned the termination of NAFTA as a choice for Congress.
“And so Congress will have a choice of the USMCA or pre-NAFTA, which worked very well.”
According to the House calendar, the House is scheduled to be in session only this week (Dec. 10-13) for the remainder of the year. The Senate’s calendar shows the Senate meeting Dec. 10-12, and Dec. 19. Congress has been known to extend legislative calendars deep into holiday seasons to get pressing legislation done.
January 3, 2019 marks the beginning of the first session of the 116 Congress, where those Congress members elected this November take office and the House majority shifts to Democrats. — WLJ
