Ag groups, lawmakers react to recent trade deals

The United States-Mexico-Canada Agreement (USMCA) was signed into law this week and the U.S. and China announced a preliminary trade agreement earlier this month, in a development that has brought a sigh of relief to agriculture groups in the region.

The USMCA replaces the North American Free Trade Agreement (NAFTA) as the trilateral trade agreement between the U.S., Mexico and Canada. With the USMCA now having been approved by both the U.S. and Mexico, only Canada’s ratification of the agreement is now needed before it can go into effect.

On Jan. 15, the Trump Administration and China announced a “phase one” trade deal aimed at cooling tensions between the two countries, as a “phase two” agreement is being sought. As part of the “phase one” deal, China has agreed to purchase about $32 billion more in agricultural goods from U.S. farmers--including wheat--over a two-year period, while the U.S. cut tariffs in half on $120 billion in Chinese products.

For regional agriculture groups, the recent agreements are trade victories worth celebrating after several years of worsening trade conditions across the globe that has hit many local farmers right where it hurts the most--their wallets.

“China has a lot of wheat, but they don’t have a lot of quality wheat,” said Washington Association of Wheat Growers Executive Director Michelle Hennings in a statement. “With Eastern Washington’s emphasis on growing quality, our farmers are well positioned to take advantage of the anticipated demand and rising prices.”

Glen Squires, CEO of the Washington Grain Commission, said that although the USMCA treaty doesn’t directly affect Pacific Northwest growers, he noted that Mexico is the U.S.’s largest wheat importer. The ability for Mexico to continue to import U.S. wheat will have a positive effect on the entire market, he claims.

“There are many challenges facing Eastern Washington wheat farmers, but prices can never be overlooked and prices have been in the doldrums for several years,” Squires said.

Rep. Dan Newhouse lauded both of the trade deals, especially the USMCA, which he has been vigorously lobbying in support of for more than a year. On the day that the USMCA was passed by the U.S. House of Representatives in December on a 385-41 vote, he said in a statement on the House floor that the vote “delivers on our promise to bring fair and equitable trade to our closest trading partners.”

The USMCA was approved on a similarly strong bipartisan vote in the U.S. Senate, 89-10. Both of Washington’s senators, Sens. Patty Murray and Maria Cantwell, voted to approve the trade agreement. The USMCA addresses more environmental concerns than NAFTA did and also won the approval of influential labor groups, including the AFL-CIO.

Prior to the vote, Sen. Cantwell took to the Senate floor and said, “it’s very important to me, coming from one of the most trade-dependent states, that we continue to open up trade markets.” She highlighted that duty-free access to Canada and Mexico for most U.S. agricultural products remains in place, and that the agreement with Mexico establishes rules for fair trade that should open up more markets to Washington products.