Tracking U.S. trade agreements since 2010, the report suggests the U.S. has taken an observer-status on… Read More...
The U.S.-Mexico-Canada Free Trade Agreement represents a new chapter in North American trade for U.S. refined corn products. Mexico and Canada represent the two largest markets for refined corn products totaling more than $900 million in yearly exports. Replacing the 25-year-old North American Free Trade Agreement (NAFTA), USMCA builds on our existing market access, expanding U.S. food and agricultural exports and supporting food processing and rural jobs in America.
Passage of USMCA in Congress was a watershed mark for U.S. trade agreements. USMCA received historic levels of bipartisan support and set the bar for Congressional approval of future trade agreements (House vote, 385 – 41, Senate vote, 89-10).
USMCA has been, and continues to provide, a tremendous opportunity for the corn refining industry and for many others in the U.S. food, agriculture, and manufacturing sectors.
While nearly 99% of U.S food and agriculture exports enjoyed duty free access to Canada and Mexico under NAFTA, USMCA increases access to Canada’s dairy, poultry, wheat, and alcohol markets. Moreover, USMCA maintains NAFTA’s zero-tariff treatment on other agriculture exports. Increased market access further promotes U.S. trading interests and ensures fair competition with our North American trading partners.
Several new provisions in agriculture were introduced or expanded in USMCA to modernize NAFTA and to create a high-level standard for future agreements including: enhanced sanitary and phytosanitary (SPS) enforcement, targeted measures for biotechnology, improved protections on geographical indicators, and increased environmental obligations. Specifically, USMCA:
The United States and Mexico have also negotiated a separate Environment Cooperation and Customs Verification Agreement that will help bolster efforts to combat trade in illegally taken wildlife, fish and timber.