WASHINGTON, D.C. (RFD NEWS) — As the United States, Mexico and Canada move forward with a review of the U.S.-Mexico-Canada Agreement (USMCA), agricultural groups are urging lawmakers and trade officials to preserve the North American trading relationship that has become critical for U.S. farmers and ranchers.
Virginia Houston with the American Farm Bureau Federation (AFBF) joined us on Thursday’s Market Day Report to discuss the importance of the agreement and what producers hope to see as renewal discussions continue.
In her interview with RFD News, Houston said the importance of Canada and Mexico as trading partners for U.S. agriculture cannot be overstated.
Since the predecessor agreement, NAFTA, took effect in 1993, average U.S. agricultural exports to North America have grown significantly — increasing from about $8.9 billion in 1993 to nearly $60 billion in 2024.
Mexico remains a major customer for U.S. commodities, including corn, dairy, wheat and pork. Canada is also a key market for U.S. forestry products, fresh fruits and vegetables, and ethanol.
The current review process was built into USMCA when the agreement replaced NAFTA. The agreement includes a provision requiring the three countries to review the pact six years after it entered into force.
That review began in 2026. If the three countries do not agree to renew the agreement, USMCA would move into annual reviews for up to 10 years. If renewal is not reached by 2036, the agreement could expire.
Houston said the Farm Bureau views USMCA as a strong agreement overall but believes there are areas where improvements can be made.
“These are really just trade irritants,” Houston said. “Holistically, USMCA has been a very strong, good agreement for U.S. agriculture, but there are improvements that can be made.”
One issue Farm Bureau is watching involves Canada’s administration of its dairy tariff-rate quota system.
Houston said the current structure favors processors over importers and retailers, which limits the share of the available quota that reaches U.S. dairy producers.
Farm Bureau is not seeking additional market access, she said, but wants the existing agreement administered in a way that reflects the original intent.
“It’s a small change, but it would make a big difference for U.S. dairy producers,” Houston said.
As negotiations continue, Houston said the message from Farm Bureau is focused on maintaining certainty for producers.
American agriculture is facing challenges ranging from high input costs to global competition, she said, making a stable trade relationship with Canada and Mexico even more important.
“For farmers and ranchers, USMCA has been a very successful agreement,” Houston said. “We need the certainty of that trilateral trade relationship.”
