Friday, May 19, 2017

Farm groups: Don't jeopardize NAFTA's benefits for ag

The Trump administration's effort to renegotiate the North American Free Trade Agreement has farm groups' close attention. First, from the USDA:
Agriculture Secretary Sonny Perdue issued the following statement today after U.S. Trade Representative Robert Lighthizer notified Congress that President Trump intends to renegotiate the North American Free Trade Agreement (NAFTA):

"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. It's why we recently announced the creation of an undersecretary for trade at USDA, because as world markets expand, we will be an unapologetic advocate for American agriculture. As I have often said, if our people continue to grow it, USDA will be there to sell it," said Secretary Perdue.

Background:
Last week, Secretary Perdue announced the creation of an undersecretary for trade and foreign agricultural affairs in the USDA, a recognition of the ever-increasing importance of international trade to American agriculture. The new undersecretary will work hand in hand with Commerce and the USTR and help open up even more markets to American products.

Agricultural trade is critical for the U.S. farm sector and the American economy as a whole. U.S. agricultural and food exports account for 20 percent of the value of production, and every dollar of these exports creates another $1.27 in business activity. Additionally, every $1 billion in U.S. agricultural exports supports approximately 8,000 American jobs across the entire American economy. As the global marketplace becomes even more competitive every day, the United States must position itself in the best way possible to retain its standing as a world leader.
From cattlemen's groups:
The National Cattlemen’s Beef Association today joined its cattle-industry partners in Canada and Mexico in sending a joint letter to the presidents of those two nations and to President Trump, urging the three leaders to not “jeopardize the success we have all enjoyed as partners of the North American Free Trade Agreement.”

The letter to President Trump, President Justin Trudeau of Canada, and President Enrique Pena Nieto of Mexico was signed by NCBA President Craig Uden, Dan Darling, president of the Canadian Cattlemen’s Association, and Oswaldo Chazaro Montalvo, president of the ConfederaciĆ³n Nacional de Organizaciones Ganaderas.

“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.”

The groups also urged Presidents Trump, Trudeau, and Nieto to “reject efforts to use NAFTA as a platform to resurrect failed policies, especially the misguided mandatory country-of-origin labeling policy that was the law of the United States for over seven years.”

“MCOOL failed to deliver its proponents’ promise to increase consumer demand or consumer confidence,” the groups said. “Instead, it created massive disruptions in live cattle trade that hurt beef producers across North America and jeopardized the jobs of American workers that depend on processing those cattle.”

NCBA has worked for years to expand access to foreign markets for America’s cattle and beef producers and in a February op-ed on CNN.com Uden called NAFTA “one of the greatest success stories in the long history of the U.S. beef industry.”

“Since NAFTA was implemented in 1993, exports of American-produced beef to Mexico have grown by more than 750%, according to the U.S. Meat Export Federation,” Uden said. “In addition, exports now account for as much as 13% 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.”

Click here to read the full letter.
Watch for our continuing coverage of this issue at CapitalPress.com.

No comments:

Post a Comment