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:

Ag has trade questions for the new administration

Let’s go ahead and talk trade headlines from the latest edition of the National Association of Farm Broadcasting News Service headlines:

Trump Election Leaves Agriculture Awaiting Clarification on Issues

rabobank-logo-squircle-jpgA new report from Rabobank says the election of Republican Donald Trump as President of the United States has the food and agriculture sector awaiting clarification on his policies and positions. The Rabobank Food and Agribusiness Research and Advisory group authored the report on the possible implications of the election. Rabobank analysts say Republican-controlled Executive and Legislative branches could “mean swift action when the new administration takes office.” Rabobank notes the advisory group is watching trade, labor and farm bill talks for potential policy changes that could have longer-term implications on the industry. The report says while President-elect Trump’s policies are yet to be clearly defined, his statements during the campaign suggest drastic changes from current policy could be on the horizon. Finally, the report predicts agriculture markets may be impacted by foreign exchange volatility in the short term as Trump takes office in January.

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New Zealand Wants to Talk Trade with Trump

Trade

New Zealand Prime Minister John Key wants to talk trade with President-elect Donald Trump as he prepares to take office in 2017.

New Zealand’s Prime Minister John Key wants to talk trade issues with U.S. President-elect Donald Trump. In a phone call between the two this week, Key told Trump he wished to talk further about trade and the Trans-Pacific Partnership. Key told Radio New Zealand that TPP was “worthy of a much fuller discussion,” adding that Trump needs the chance to get a proper assessment before seeing how “we can move things forward.” The Prime Minister said Trump was not rejecting the notion. New Zealand indicated the nation would give the new U.S. administration time to fully consider its trade agenda. That comes after New Zealand’s Parliament approved legislation last week allowing the nation to join TPP, despite the likelihood the trade deal will not proceed.

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Canada Cattle Producers urge Trade Fight if Trump Revives COOL

country-of-originCattle producers from Canada will urge the nation to retaliate against the United States, should U.S. President-Elect Donald Trump revive the U.S. Country-of-Origin meat labeling program (COOL). An internal memo within Trump’s transition team detailed how the new administration would immediately initiate changes to the North American Free Trade Agreement with Canada and Mexico, according to Reuters. That could include measures on COOL, which would reignite a six-year trade battle between the U.S. and Canada. U.S. lawmakers repealed COOL last December after the World Trade Organization approved more than $10 billion in trade retaliations by Canada. Canadian Cattlemen’s Association spokesperson John Masswohl says: “We’re watching, and if we think it discriminates against our cattle, our recommendation is going to be that tariffs go into place immediately.” However, he added that until it’s clear how Trump might approach COOL, no action is necessary.

One of the bigger post-election questions is the North American Free Trade Agreement. President-elect Trump feels it needs to be renegotiated with Canada and Mexico. Cuba is another country that agriculture groups want to open up to free trade opportunities. A group of US farmers and congressmen went to Cuba to lobby for agricultural trade about a year ago: