Representatives from the member nations signed off on the trilateral trade pact in November. But each federal government needs to ratify the deal before it can be implemented and ultimately replace NAFTA.
Ratifying the USMCA is a top national priority for 2019, ag organizations say.
“Mexico and Canada are the U.S. corn industry’s largest, most reliable corn market; Mexico is corn’s number one buyer and Canada is one of our largest ethanol importers. We cannot afford to risk losing this market,” Lynn Chrisp, president of the NCGA, said in a statement Friday. “USMCA is NCGA’s top legislative priority for 2019 and we will be working closely with the Administration and members of Congress to get it ratified.”
The ratification process may include the U.S. removing tariffs on steel and aluminum from Canada and Mexico.
President Trump imposed 10 and 25 percent tariffs on Canadian and Mexican steel and aluminum, respectively.
The time has come to stop those levies, said Sonny Perdue, the U.S. ag secretary.
“I have come to the conclusion that tariffs as a leverage mechanism are very effective,” Secretary Perdue said during the Commodity Classic in Orlando, Fla. “I think (President Trump has) validated that. I think once you’ve used that leverage, I’m working to persuade him that the leverage is no longer needed, unless it’s needed for enforceability going forward. I don’t believe we need that for Canada and Mexico.”