Industry News - AM

Sec. Perdue says NAFTA will be ‘a better deal’ for farmers, ranchers


By Tom Johnston on 5/22/2017

Following President Trump’s notification to Congress of his intent to renegotiate the North American Free Trade Agreement (NAFTA) with Canada and Mexico, Agriculture Secretary Sonny Perdue issued a statement assuring farmers and ranchers that it will be “a better deal” for them as the ag community continued to express concerns.

In contrast to comments from the National Pork Producers Council and National Cattlemen’s Beef Association, which urged preservation of a deal that has been a boon to their constituents, the United States Cattlemen’s Association (USCA) said its members have experienced “distorted and unfair trading practices” that have caused them economic harm under NAFTA.

“Specifically, we hope that President Trump will take this chance to strike any provisions that may prevent the reestablishment of a Country-of-Origin-Labeling (COOL) program for U.S. beef products,” USCA Trade Committee Chairman Leo McDonnell said in a statement.

Congress dismantled COOL after the World Trade Organization ruled that it violated international trade laws in discriminating against Canadian and Mexican cattle. NPPC, NCBA and other industry groups have urged Trump to keep COOL out of the NAFTA talks, while other groups have joined USCA in calling for its reinstatement.

That conflict notwithstanding, USDA data show that since NAFTA's implementation in 1994, U.S. agricultural exports to Canada and Mexico have more than quadrupled, to $38.6 billion in 2015 from $8.9 billion in 1993. Agricultural groups therefore have largely called on Trump to do no harm. 

Meanwhile, in his statement Perdue said, "While NAFTA has been an overall positive for American agriculture, any trade deal can always be improved. As President Trump moves forward with renegotiating with Canada and Mexico, I am confident this will result in a better deal for our farmers, ranchers, foresters, and producers. When the rules are fair and the playing field is level, U.S. agriculture will succeed and lead the world.”

Last week, Perdue created a trade secretary post to prioritize U.S. agricultural trade.


 
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