To speed approval of the successor to NAFTA, President Trump should remove tariffs on steel imported from Canada and Mexico, said Senate Finance Committee chairman Chuck Grassley on Monday.
Although President Trump declared the United States-Mexico-Canada Agreement a big win for U.S. farmers, a study released on Wednesday says U.S. farm exports will fall by $1.8 billion due to retaliatory tariffs by Mexico and Canada. That would be four times larger than the gains the trade pact would produce.
Wheat and dairy groups were guarded in their assessments of the North American trade pact, while Agriculture Secretary Sonny Perdue asserted on Thursday the agreement "is locking up two of our top three markets for the future." The administration says the agreement, which needs approval by Congress, will enable fairer trade in food and agriculture but has not suggested what additional trade flow to expect.
President Trump veered between predicting easy approval of the new Canada-Mexico-U.S. trade agreement and expressing concerns about opposition to the pact on Monday while declaring that the agreement “is a very, very big deal for our farmers.”
Agriculture Secretary Sonny Perdue described a potential tri-national agreement on a new NAFTA as the start of a domino effect in rewriting U.S. relations with trading partners around world. "I would love to have a deal today with Canada to put NAFTA back together," said Perdue during a C-SPAN interview in which he called for reform of Canada's supply-management system."
Dairy is not the only agricultural dispute between the United States and Canada, but it is the biggest one, according to Agriculture Secretary Sonny Perdue. Senior U.S. officials say the new NAFTA must include greater U.S. dairy access to Canada.
In a video posted Monday on social media, the U.S. cattle industry predicted it would be shut out of the Chinese market and lose an estimated $70 million in beef sales this year due to retaliatory tariffs. Groups representing pork and dairy producers expressed similar concerns.
Agriculture Secretary Sonny Perdue was quick to say he's not a NAFTA negotiator but he repeatedly told reporters during a visit to Prince Edward Island that "it is not our desire to do away with" Canada's supply management system for dairy – if Canada does a better job of managing the supply. "They can't use the supply management system to negatively affect our producers south of the border," said Perdue during a teleconference.
The U.S. dairy industry launched the “Got Jobs?” campaign on Monday to highlight the importance of the dairy sector and build support for dairy exports, which account for about 14 percent of U.S. milk production.
In a letter to leaders of the NAFTA nations, seven wheat groups that span the continent and represent a range of players, from growers to millers to bakers, said an updated NAFTA that continues duty-free agricultural trade is critical to their success.