Welcome

Welcome

Friday, May 19, 2017

President Trump officially notifies Congress of his administration’s intent to initiate negotiations with Canada and Mexico to update the North American Free Trade Agreement

President Trump today officially notified Congress of his administration’s intent to initiate negotiations with Canada and Mexico to update the 23-year-old North American Free Trade Agreement (NAFTA), and meat industry groups were quick to call for preserving those components of the deal that have been a boon to their constituents.Getting right to the point, the National Pork Producers Council in a statement urged the president to make sure that tariffs remain at zero for pork traded in North America. U.S. pork exports to Canada and Mexico last year were almost $799 million and nearly $1.4 billion, respectively.“Canada and Mexico are top pork export markets. We absolutely must not have any disruptions in exports to our No. 2 (Mexico) and No. 4 (Canada) markets,” said NPPC President Ken Maschhoff.Similarly, the National Cattlemen’s Beef Association urged Trump and his counterparts in Canada and Mexico to not “jeopardize” NAFTA’s rewards. “Recent statements about the possible dissolution of NAFTA or potential renegotiation of NAFTA are deeply concerning to us because of the unnecessary risk it places on our producers,” the letter states. “While there may be general agreement among the countries to improve some parts of the NAFTA trade framework, we urge you to recognize that the terms of the agreement affecting cattle producers are strongly supported as they currently exist and should not be altered.”Since NAFTA was signed into law in December 1993, exports of American-produced beef to Mexico have grown by more than 750 percent, NCBA President Craig Uden said, citing U.S. Meat Export Federation data. He added that exports now account for as much as 13 percent of overall U.S. beef production — "and it's more likely to be higher-quality cuts that bring in higher revenues for the hundreds of thousands of American families in the beef community.”Trump’s notification begins a 90-day period in which the president’s trade team and Congress must deliberate on objectives of the negotiations. Thirty days before talks begin, the administration is required to make public a “detailed and comprehensive summary of the specific objectives.”Since NAFTA went into effect Jan. 1, 1994, U.S. trade north and south of the borders has more than tripled, growing more rapidly than U.S. trade with the rest of the world. Canada and Mexico are the two largest destinations for U.S. goods and services, accounting for more than one-third of total U.S. exports, adding $80 billion to the U.S. economy and supporting more than 3 million American jobs, according to data from the Office of the U.S. Trade Representative. In fact, U.S. manufacturing exports to Canada and Mexico have increased nearly 260 percent over the past 23 years, and U.S. farm exports to the countries have grown by more than 150 percent.