One Year of USMCA: “A win for American workers... and the overall economy”

The U.S./Mexico/Canada Trade Agreement has officially been in force for one year. A Texas delegation looks back on its creation and considers what is next for the deal.

Farmers and ranchers shipped $22 billion dollars worth of goods to Canada last year and another $18.4 billion dollars to Mexico, making them the number two and three trading partners of the U.S.

Texas Congressman Kevin Brady says that it is a sign the U.S./Mexico/Canada Trade Agreement is working.

According to Brady, “USMCA is also proving everyday to be a win for American workers, for farmers, for small businesses, and the overall economy. The negotiation of this agreement proved that bipartisanship is critical in renewing trade programs and establishing new trade agreements that benefit all Americans.”

China moved into the top spot in 2020, but Texas Farm Bureau president, Russel Boening says that North America is still the most important market.

“It would have been devastating to Texas agriculture to lose a trade agreement with our two most important trading partners,” Boening states. “I know we always kinda talk about China being the big guy, but no, these two are our neighbors.”

For Congressman Jodey Arrington, year two of the USMCA will be about enforcing the agreement.

“There are already a couple of dispute resolution panels on ag related issues in Canada and worker related issues in Mexico, and that’s healthy. We have enforcement mechanisms. We’re going to find out how well they work and that’s natural in any relationship,” Arrington states.

Congressman Brady says that the administration is not currently negotiating any new trade agreements, something he is pushing them to work on.

“Pursuing new agreements, open markets in the UK, Europe, and expand trade agreements with Japan. I think there are more opportunities in Africa as well,” Brady adds. “I am urging the administration to seek a phase two agreement with China that addresses the remaining trade distortions and subsidies we have with them.”

The U.S. currently has an active dispute settlement panel with Canada, challenging Canada’s allegation of dairy tariff-rate quotas.


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