WASHINGTON DC (March 13, 2020) — Secretary of Agriculture Sonny Perdue issued the following statement after the Canadian Parliament approved the United States-Mexico-Canada Agreement (USMCA):
“USMCA is a great victory for America’s agriculture industry, and I am pleased to see Canada’s Parliament approved the deal today. USMCA locks in and expands access to our neighbors to the North and South. I thank President Trump for negotiating this deal and for always supporting America’s farmers and ranchers. We will continue to work with both Canada and Mexico in implementing this agreement.”
Background:
USMCA was signed into law by President Donald J Trump on January 29, 2020, after it received overwhelming bipartisan support in Congress. All three countries are working together closely on implementation in advance of the Agreement’s entry into force. USMCA will advance United States agricultural interests in two of the most important markets for American farmers, ranchers, and agribusinesses. This high-standard agreement builds upon our existing markets to expand United States food and agricultural exports and support food processing and rural jobs. Canada and Mexico are our first and second largest export markets for United States food and agricultural products, totaling more than $39.7 billion food and agricultural exports in 2018. These exports support more than 325,000 American jobs.
Key Provision: Increasing Dairy Market Access
- America’s dairy farmers will have expanded market opportunities in Canada for a wide variety of dairy products. Canada agreed to eliminate the unfair Class 6 and 7 milk pricing programs that allowed their farmers to undersell US producers.
Key Provision: Biotechnology
- For the first time, the agreement specifically addresses agricultural biotechnology — including new technologies such as gene editing — to support innovation and reduce trade-distorting policies.
Key Provision: Geographical Indications
- The agreement institutes a more rigorous process for establishing geographical indicators and lays out additional factors to be considered in determining whether a term is a common name.
Key Provision: Sanitary/Phytosanitary Measures
- The three countries agree to strengthen disciplines for science-based measures that protect human, animal, and plant health while improving the flow of trade.
Key Provision: Poultry and Eggs
- US poultry producers will have expanded access to Canada for chicken, turkey, and eggs.
Key Provision: Wheat
- Canada agrees to terminate its discriminatory wheat-grading system, enabling US growers to be more competitive.
Key Provision: Wine and Spirits
- The three countries agree to avoid technical barriers to trade through non-discrimination and transparency regarding sale, distribution, labeling, and certification of wine and distilled spirits.
