The case for USMCA: Advocates push for renewed trade agreement

WASHINGTON — The United States-Mexico-Canada Agreement is up for a joint review July 1 — a critical moment that will determine whether the free trade agreement continues or terminates.

The newly formed Agricultural Coalition for USMCA released an analysis that shows how important the trade agreement is for all three countries.

“The U.S.-Mexico-and-Canada Agreement took effect in July 2020, replacing and strengthening the former North American Free Trade Agreement,” explained Krista Swanson, National Corn Growers Association chief economist, during a press conference.

“The USMCA agreement modernized trade rules, expanding market access for U.S. products, and established more balanced and reciprocal terms among the three partners. Partnership with our neighbor nations makes a lot of sense economically, geographically and strategically.

“Our analysis shows that USMCA is a powerful driver for employment, investment and long-term competitiveness in the U.S. agricultural sector.”

Report 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 United States.

• USMCA-related agricultural and seafood trade contributed $64 billion to U.S. GDP and supported $13 billion in federal, state and local tax revenue.

“While the agreement is due for a few targeted improvements, overall it is critical to the farm economy and it is certainly helpful to rural America, particularly during tough economic times like we are in right now,” Swanson said.

“Without USMCA, U.S. agriculture would lose a critical source of stability, face reduced market access, and fewer opportunities at a time when rural America can least afford disruption.”

Economic Engine

Through USMCA, there were $3.6 billion in exports for the U.S. dairy industry in 2024 alone, said Shawna Morris, executive vice president of trade policy and global affairs at National Milk Producers Federation.

“That $3.6 billion in just one year represents 44% of all our exports. It’s a really sizable amount of the total demand for American dairy farmers milk.”

While USMCA is a strong agreement, it’s not perfect, Morris said.

“The USMCA review offers an unmissable opportunity to make some targeted enhancements so the agreement can live up to its full intended potential,” she said.

“Most notably, Canada still has a lot of work to do to hold up its end of the bargain on dairy. For years now, Canada’s been playing games with access to its dairy tariff rate quotas, and that’s resulted in shortfalls and export access the U.S. negotiated for.”

Alexis Taylor, chief global policy officer at International Fresh Produce Association, said that the USMCA review is also consequential for fresh produce.

The report showed $2.81 billion of fruit and $2.5 billion of vegetables were exported to Canada and Mexico in 2024.

“We are an industry that depends on daily cross border movement and highly integrated supply chains,” Taylor said.

“What this analysis shows is that the agreement is vital not just to U.S. produce farmers, but our entire supply chain.

“Fresh fruits and vegetables do not move through North America on a bilateral basis. They move through a trilateral system that connects growers and packers and distributors and ultimately the end consumer in all three countries.”

To learn more about the Agricultural Coalition for USMCA, visit agforusmca.com.