What’s next regarding NAFTA?

American agriculture will have a hard time succeeding without a solid trading relationship with other countries. Now that the Trans-Pacific Partnership is off the table, new President Donald Trump and his administration are now turning their attention to the North American Free Trade Agreement (NAFTA). It’s the first time an administration took a serious look at renegotiating at least parts of the deal since it was signed during the Clinton administration.

NAFTA, Free trade agreement with Canada and Mexico

The Trump Administration still has a goal of renegotiating the North American Free Trade Agreement (NAFTA) with Canada and Mexico in an attempt to make it more favorable for America. (photo from CNN Money)

The National Association of State Departments of Agriculture recently held their winter policy conference in Washington, D.C., and trade was one of the biggest topics of conversation. Nathan Bowen is the Director of Public Policy at NASDA. He says that NAFTA has been a very good thing for agriculture for a long time.

“U.S. agriculture depends on export opportunities for our livelihood,” Bowen said. “With the new administration, there’s a lot of talk about what’s going to happen on the international trade front.”

Bowen says NAFTA has been very important for U.S. farmers and ranchers, who depend on the markets in Canada and Mexico for significant parts of their livelihood. NASDA wants to make sure as the administration looks at redoing NAFTA, agriculture has a place at the table.

“We are working to make sure that agriculture keeps the gains they’ve made under NAFTA,” Bowen said, “and that we do take opportunities that are there to strengthen the agreement. Farmers send a whole range of commodities to markets in both Canada and Mexico.”

He says NAFTA has been good for a whole list of Ag sectors, including beef. U.S. beef exports to Mexico and Canada have almost tripled since the beginning of the agreement. It was a little over $600 million dollars back in 1994, rising to $1.9 billion as recently as 2015.

“The access that U.S. beef has enjoyed in both of those markets has really been important for the industry,” Bowen adds. “The same could be said for corn, with significant gains in that sector, and pork is another really good success story.”

Bowen adds that there really isn’t a timeline for negotiations between the three countries to begin but he’s hopeful it will start as soon as possible so that agriculture will know where it stands with market access to Canada and Mexico.

Here’s the complete conversation with Bowen: