March 29, 2024

Implementation of USMCA begins: Trade agreement important to U.S. farmers

WASHINGTON — The United States began a new phase of trading with Canada and Mexico on July 1 with the implementation of the United States-Mexico-Canada Agreement.

“The success of these trade agreements is key to the 21st century economy,” said Rep. Jim Costa, D-Calif. “Canada and Mexico together equal more trade than our other eight trading partners combined.”

“Trade agreements only happen when you have bipartisan efforts that come together,” Costa said during a webinar organized by Farmers for Free Trade.

“It is absolutely critical for us to be able to trade fairly,” Costa said. “American farmers are the best in the world growing 400 commodities with the best nutrition, the highest yields and at the best value. We do that every day, and we do it so well that we can export products.”

Farmers in California, Costa said, grow 80% of the world’s almonds and 50% of the world’s pistachios.

“We are No. 1 in orange and wine production and less than 4% of California’s population does that,” he said.

Blanche Lincoln, former U.S. senator and Agriculture Committee chair, participated in the Farmers for Free Trade motorcade during 2019.

“The RV traveled 20,000 miles across 30 states and made more than 100 stops,” she said. “The first stop I went to was in Pennsylvania at one of the oldest dairy farms in the country.”

The past several months have been an incredibly difficult time for the United States due to the coronavirus pandemic, Lincoln said.

“We must do everything we can to insure our nation’s farmers are able to continue providing America and the world the safest, most affordable and abundant supply of food and fiber across the globe,” she said. “A global trade policy is a critical piece to provide predictability and insure U.S. food and fiber products reach those who need it the most.”

“We need to be vigilant,” said U.S. Rep. Collin Peterson, D-Minn., and chairman of the House Agriculture Committee. “There’s troubling signs that people are using COVID as a reason to put up trade barriers, and we need to make sure the agreement is enforced.”

The past three to four years have been brutal for Wisconsin farmers, said U.S. Rep. Ron Kind, D-Wis.

“There have been record bankruptcies in Wisconsin, and the numbers look even worse this year,” he said. “A large part of that is the built-up surplus in commodities driving prices down, and one of the best ways to change that is by working to open market access to feed the world and export a product we’re really good at making.”

“Agriculture’s economic reach extends far beyond the farm gate and deep into the cities,” said John Bode, president of the National Corn Refiners. “Food and agriculture economic activity accounts for roughly one-fifth of America’s economic activity, providing over 22 million jobs or nearly 15% of U.S. employment.”

Trade is vital to American agriculture-related business.

“Ag exports support more than 1 million American jobs, and roughly 70% of these jobs are in the non-farm sector such as processing, manufacturing, etc.,” Bode said. “About 95% of the world’s consumers live outside our borders.”

Dave Milligan grows wheat, corn, soybeans and dry edible beans on 4,000 acres about 100 miles north of Detroit.

“Mexico has developed to be a big customer of wheat,” said the farmer, who is also president of the National Association of Wheat Growers. “Mexico is the No. 1 or 2 user of U.S. wheat, so we need to keep that market.”

Michelle Erickson, owner of Gooseneck Land and Cattle in Broadview, Montana, was one of many farmers who spoke with members of Congress about the importance of the USMCA.

“It’s not about parties — it’s about the issue,” Erickson said.

“We’re not going to agree on everything, but we can work together to advance trade policies and make export opportunities better for farmers and improve economic conditions,” she said. “It is still possible to gather large groups of congressional members in support of a policy initiative or trade agreement.”

“It has been evident through this pandemic that food doesn’t come from grocery store warehouses,” said John Paul Dineen, owner of Dineen Farms in Texas. “There are families, men and women behind getting that product raised and to that market.”

Dineen participated in the motorcade that made nine stops throughout Texas.

“What better time than this week leading up to America’s birthday to unveil this agreement,” he said. “Better days are to come for the American farmer.”

Lincoln encourages farmers to stay in contact with members of Congress.

“Things never stop in Washington, and we shouldn’t stop either,” she said. “We need to keep the voices of America’s farmers top of mind as additional trade agreements are negotiated.”