USMCA Produces Certainty, Modest Agriculture Gains, Renewed Focus on China
DENVER (October 05, 2018) — The overhauled North American Free Trade Agreement, now named the United States-Mexico-Canada Agreement, or USMCA, which is expected to be ratified next year, will accomplish some important objectives for U.S. agriculture. However, what was not accomplished in the agreement is just as important according to a new report from CoBank’s Knowledge Exchange Division.
While having an agreement improves certainty, brings more market access and allows the White House to focus trade talks on fewer fronts, it does not provide a pathway to eliminate existing retaliatory tariffs – where industries such as dairy and pork have been hardest hit.
“Canada and Mexico are the first and third largest export markets for U.S. agriculture, accounting for more than a quarter of all U.S. agriculture exports,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange Division. “This agreement will advance the ball for some sectors, but for others, the deal represents a return to the status quo. Market access gains will be modest, but we expect the increased certainty to boost domestic and cross-border investment. However, Canada and Mexico still have tariffs in place that affect the U.S. dairy, pork and beef sectors. U.S. agriculture will have much more to celebrate when those barriers are removed.”
The report, “From NAFTA to USMCA: Implications of the New U.S.-Mexico-Canada Trade Agreement for American Agribusiness,” breaks down the impacts of the new agreement on U.S. agriculture by sector, and assesses the issues facing those sectors going forward.
To read the full report, click here.
CoBank is a $131 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 70,000 farmers, ranchers and other rural borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.
For more information about CoBank, visit the bank's website at cobank.com.
Corporate Communications Manager, CoBank
*Members of CoBank’s Knowledge Exchange Division are available for media interviews on request.
Dairy Supply Chains Will Need to Adjust as Consumer Behavior Changes
COVID-19 causing shifts and uncertainty in purchasing patterns and consumption habits
COVID-19 is dramatically affecting consumer habits and dairy supply chains as food service demand plummets and grocery sales surge.
Teri Viswanath Joins CoBank’s Knowledge Exchange as Lead Economist.
June 29, 2020
CoBank today announced that industry analyst Teri Viswanath has joined its Knowledge Exchange division as lead economist, power, energy and water.
Citizens Broadband Radio Service Auction Presents New Options for Rural Operators
Acquiring an affordable CBRS spectrum license could be an attractive investment
The upcoming Citizens Broadband Radio Service auction will enable new market entrants, including smaller and rural operators, to build carrier-grade networks at very attractive costs.