LAREDO, TEXAS (RFD NEWS) — The U.S.-Mexico-Canada Agreement (USMCA) trade pact is slated for renegotiation this year, and lawmakers are highlighting priorities for the talks. Rep. Henry Cuellar (D-TX) says revisions are needed to update what was once called “the best trade agreement in the history of the world.”
“If you keep in mind when this agreement was done some years ago, it was called, quote, ‘the best agreement’ and ‘the best trade agreement in the history of the world,’” Cuellar said. “And now we need to make some revisions.”
Cuellar, who refers to USMCA as “NAFTA 2.0,” says he wants the renegotiations to bring stability and certainty, noting that tariffs only add to uncertainty. Since USMCA went into effect in July 2020, South Texas has seen economic growth, including rising land values near the U.S.-Mexico border.
The results show, loud and clear, USMCA has benefited the South Texas economy in a big way, and it’s benefited the ag economy down here — but there’s always room for improvement. So the question comes about what can be added to USMCA that would benefit the ag economy down here even more?
South Texas Cattlemen Benton England says changes are needed to bring quick results for the ag industry.
“On the commodity market, it’s just really, really bad right now,” England said. “We need to see some upticks in prices and fast that we’re already having a lot of farmers just packing it up and quitting. And we’ve got to be able to stop that, because if we don’t, eventually we won’t have anything left.”
Cuellar says his priority is to ensure stability and prevent tariffs, with particular attention to China’s use of rules of origin to avoid U.S. exposure.
“One of the things that I’d be focusing on, besides stability and hopefully no tariffs between the three countries, is China,” Cuellar said. “You know, how are they using the rules of origin? Because we don’t want Mexico to be a staging place for the Chinese products.”
Rep. John Rose (R-TN), notes that bilateral trade issues and duty-free trade rules may need reassessment, including tariffs under the International Emergency Economic Powers Act.
“Potential revisions to the rules for duty-free trade, I think, are an area that might need some assessment,” Rep. Rose said. “You know, I think there’s the real question, is this joint review process, is it the appropriate forum for ironing out, you know, longstanding bilateral trade disputes? So there are a few other, you know, issues like global national security tariffs and, you know, tariffs that have been put on Canadian and Mexican goods under the International Emergency Economic Powers Act are things that I think we’d like to see addressed.”
Asked whether renegotiations could lower beef prices, Cuellar says current cattle prices are stable, and import restrictions, such as those related to the New World screwworm, affect availability.
“Cattle prices, you know, they’re stable, low, high, but they’re stable. Beef prices at grocery stores are high. And certainly when you are dealing with the new world school warm and you’re not allowing cattle to come in, then the less cattle are available, then certainly prices go up. So that’s why this impact from importations or lack of importation because of the New World screwworm.”
Rose adds that while there may be marginal gains in beef pricing, significant reductions are unlikely through USMCA renegotiations.
“With respect to USMCA, I don’t know that there’s any major gain that we could make there. I think dairy is more an area, seasonal products, I think, is an area. But I mean, there might be some marginal gains in the beef space that might help prices.”
USMCA renegotiations are scheduled for July, according to previous reports. However, Cuellar notes that scheduling in Washington can be unpredictable.
