DES MOINES, Iowa- Iowa Agriculture Secretary Mike Naig is reacting to passage of the U-S trade agreement with Mexico and Canada.
"When Canada and Mexico are your number one trading partners, as they are for Iowa, this deal is a big deal," Naig told WHO Radio's Big Show. We need to celebrate this deal, and then we absolutely must think about phase two of the agreement with China, the full free trade agreement with Japan, getting a deal with the UK and working with issues with Europe, there is plenty to do when it comes to trade negotiations," said Naig.
The Iowa Department of Agriculture released this additional information.
- Full implementation of USCMA could increase U.S. agricultural exports by $2.2 billion, according to the U.S. International Trade Commission.
- Iowa exports to Canada in 2018, according to WISERTrade.
- $198 million of ethanol
- $137 million of animal feed
- $108 million of pork
- $7 million of beef
- $86 million of corn
- $44 million of soybeans
- Iowa exports to Mexico in 2018, according to WISERTrade.
- $15 million of ethanol
- $229 million of animal feed
- $112 million of pork
- $1 million of beef
- $546 million of corn
- $224 million of soybeans
The USMCA passed the Senate 89-10. It was one of President Donald Trump's top legislative priorities, and had bi-partisan support. The USMCA replaces the North American Free Trade Agreement (NAFTA), which was negotiated during the Clinton Administration.
Mexico has ratified the agreement, but Canada has yet to do so.
Iowa Soybean Association President Tim Bardole of Rippey issued a statement:
Iowa soybean growers celebrate today’s congressional passage of the U.S.-Mexico-Canada Agreement (USMCA). This long-awaited news contributes to feelings of optimism and security for the future of our farming businesses.
Mexico and Canada are both in the top four markets for U.S. soybean export destinations. Mexico is the No. 2 buyer of soybeans and Canada is the No. 4 buyer of soybean meal. Trade agreements with our North American neighbors are imperative for the success of the soybean industry and in providing certainty for a homegrown, renewable product with the ability to pave the way toward a more sustainable future.
“The United States is set up perfectly to trade with our neighbors to the north and south of us,” said Jim Greif Iowa Corn Growers Association (ICGA) President and farmer from Monticello. “The passage of the modernized agreement is a bright spot for corn farmers starting fresh in 2020 as exports are a key market for corn in all forms. Last year was tough for many farmers who have faced an excess amount of challenges outside of our control. USMCA demonstrates the commitment for trade agreements for the United States, and ICGA will continue to work for the facilitation of free trade with partners around the world.”
The Iowa Cattlemen's Association statement:
“USMCA has been a top priority for our association, and we are pleased with the Senate’s vote. We urge President Trump to sign the agreement as soon as possible, in order to provide more opportunity and certainty to Iowa’s farmers, and especially our beef producers,” says Matt Deppe, CEO of the Iowa Cattlemen’s Association.
The Association says export markets add over $300 to the value of each head of cattle in Iowa, and Canada and Mexico are responsible for about $70 of that total.