USTR Report Says Administration to Stay Tough On China

The Trump administration said it will continue to press China over its unfair trading practices and urged Congress to approve a pact to replace the North American Free Trade Agreement this year, in an annual report outlining U.S. trade priorities. The U.S. will also pursue trade negotiations with Japan, the European Union and the UK, the U.S. Trade Representative’s office said in the report released on Friday. “One of the administration’s top priorities in 2019 is to obtain congressional approval of the USMCA,” according to the report, referring to the U.S.-Mexico-Canada agreement. “The USMCA gives more priority to the interests of American workers than any prior deal signed by the United States. It is not merely a new trade deal — it is a new paradigm for future agreements.” Groups Warn Against NAFTA Exit without USMCA While getting the U.S.-Mexico-Canada (USMCA) agreement approved is a top priority for four major commodity organizations in 2019, they are also warning that the U.S. should not leave the 1994 North American Free Trade Agreement (NAFTA) prior to approving the new pact. The National Corn Growers Association (NCGA), American Soybean Association (ASA), National Association of Wheat Growers (NAWG) and National Sorghum Producers (NSP) weighed in on NAFTA and USMCA March 1, during the 2019 Commodity Classic conference. The groups' support for USMCA is predictable, but their warning on NAFTA underscores concerns as the newly negotiated accord faces congressional approval. President Donald Trump has suggested he may use NAFTA withdrawal to pressure Congress into approving USMCA – a tactic even many lawmakers who back the updated deal have warned against. If the U.S. withdraws and USMCA is not in place it would have a sharply negative effects on trade flows and the broader U.S. economy, observers have warned. Protecting trilateral North American trade ties is vitally important to corn growers, NCGA President Lynn Chrisp said. "Mexico and Canada are the U.S. corn industry’s largest, most reliable corn market; Mexico is corn’s number one buyer and Canada is one of our largest ethanol importers. We cannot afford to risk losing this market," he warned. Ratification of USMCA is "NCGA’s top legislative priority for 2019," and the group is committed to working with the Trump administration and Congress to ensure the deal is approved, Chrisp said. Meanwhile, NAFTA export gains for U.S. soybeans were highlighted by ASA President Davie Stephens. Under the 1994 accord, "soybean exports to Mexico quadrupled and to Canada doubled," he observed. Building on NAFTA, USMCA “would boost both national and rural economies, and for soybeans, it would assure us tariff-free access to two strong markets," he added.