WEST BEND, Wis. (RFD News) — The U.S.-Mexico-Canada Agreement is up for review this week and President Trump has threatened to let the deal expire.
Naomi Blohm with Total Farm Marketing says that kind of uncertainty could create volatility with North America’s largest trading partners.
“Is it going to be renewed or not? That uncertainty with our major trading partners could wreak havoc on the market. It could be supportive if they sign it right away. It could provide uncertainty if they don’t. Then we’re going to be heading into a three-day holiday weekend.”
However, U.S.-Canada Relations Board-member and Former Quebec Premier Jean Charest says the agreement would not disappear overnight if this month’s review does not go as the agriculture industry hopes.
“On the first of July, if there’s no agreement on the revision, it just goes on for the next ten years. If he chose not to renew, what the agreement now says is there would be a six month notice.”
Leaders in both Canada and Mexico have said they want to renew the USMCA.
RealAg Radio Host Shaun Haney joined us on Monday’s Market Day Report to discuss what producers should expect as the review process gets underway.
In his conversation with RFD News, Haney said July 1 is more of a milestone than a hard deadline, with negotiations expected to continue as the three countries work through the review process.
Haney says agriculture’s biggest priority is maintaining certainty and avoiding disruptions to trade as negotiations continue.
He says the integrated agricultural supply chains shared by the United States, Canada and Mexico make predictable market access critical for farmers, ranchers and agribusinesses.
