USMCA Roundtable Discussion – June 21, 2019
USMCA Will Increase Market Opportunities for Illinois Farmers
Join us for a USMCA roundtable Discussion on June 21, 2019 @ 8:00 AM at the Holiday Inn in Rock Island, IL. IL USMCA Event Flier
Last year, farmers in our state exported $8.2 billion in agricultural goods. and supported 68,500 jobs. Twenty-eight percent of our agricultural trade is with Mexico and Canada and 8.2 percent of our farm jobs are tied to that trade. As Congress considers its agenda for the remainder of the year, an important conversation on trade will determine the fate of farmers and ranchers in Illinois. The U.S. Mexico- Canada Agreement (USMCA), signed by President Trump and his counterparts in both Mexico and Canada, replaced the old North American Free Trade Agreement with important improvements in food and agricultural trade. Among the improvements for Illinois are:
- Protection of our ag trade with Mexico and Canada
- Expansion of trade in dairy, poultry, eggs and other goods through an increase in tariff rate quotas for these products
- Reducing trade-distorting biotechnology policies for all new biotechnologies, including gene editing
- Fairer grading treatment of U.S. wheat exports into Canada
- Enhanced rules for science-based sanitary and phytosanitary measures
- Non-discriminatory and transparency commitments regarding the sale, distribution, and labeling and certification provisions for alcoholic beverages
Another crucial victory is that all food and agricultural products that had zero tariffs under NAFTA will remain at zero tariffs. The work put into this agreement from all three member countries helped ensure a free and fair trade deal for all in the final product. The agreement is now in the hands of Congress, where our representatives will vote to either approve the deal or throw it out and start anew. We need support from Congress to keep rural farms viable in Illinois. Ratifying USMCA will increase market access opportunities for Illinois agricultural producers, thereby increasing profit opportunities for farmers and ranchers. Farm income has been steadily declining the past five years as input costs for equipment, seed, and fertilizer continue to rise. Most years, it is difficult for farmers and ranchers just to break even. The increased market access provided by USMCA is crucial to reviving the agricultural economy. Worldwide trade disputes have put U.S. producers in a precarious position, resulting in a surplus of agricultural commodities in many parts of the country. Increasing market access to Canada and Mexico can help alleviate that pressure point and strengthen the bottom line of U.S. producers. Farmers are naturally optimistic. We work with what Mother Nature and the markets give us. We’re still optimistic about farming even with the challenges we face every day. But, our future, and the future of those in farming, would be more secure with a ratified USMCA. I urge Congress to bring the deal for a vote and ratify it as soon as possible.
