President Trump signs USMCA trade agreement, predicting increase of US ag exports

WASHINGTON (KEYC) — President Donald Trump signed the USMCA trade agreement Wednesday. The revised NAFTA agreement opens doors to Canada and Mexico, who are staple trading partners for not only the nation as a whole, but for southern Minnesota as well.

“This agreement is a tremendous breakthrough for American agriculture. Canada will finally provide greater access for American dairy. Canada is opening up. It will grow annual exports to our neighbors by an estimated $315 million,” President Donald Trump said.

The USMCA agreement replaces the 26-year-old North American Free Trade Agreement (NAFTA), bringing the United States, Mexico and Canada up to speed on current markets and looking to benefit multiple industries in southern Minnesota.

“Forty-eight percent of Minnesota’s farm exports went to Canada or Mexico, so updating the agreement, expanding opportunities for others, including equipment manufacturers, for instance, Jackson, Minnesota, home of AGCO, I think this is going to be good for them,” Rep. Jim Hagedorn (MN-01) explained.

In 2018, Minnesota exported around $7 billion worth of goods to Canada and Mexico and, with the inclusion of dairy in the USMCA provisions, hopes are the export numbers grow as Hagedorn said Canada would drop the, on average, around 300% tariff level on U.S. dairy products.

“It should increase our exports. Should help our dairy farmers, should help our manufacturers and people like AMPI, the co-ops, others, so we’re excited about that,” Hagedorn continued.

Hagedorn said the USMCA deal is creating momentum in other trade deals.

“You’re already seeing that with China... you’re seeing that with Japan where we’ve increased our exports now for pork and beef, that’s great for southern Minnesota, because we’re number two in livestock in the whole country when you look at that, especially for hogs,” added Hagedorn.

The USMCA trade agreement has been ratified in the United States and Mexico and is waiting to be passed by the Canadian parliament.