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USTR: Trump to renegotiate NAFTA treaty
 
By DOUG SCHMITZ
Iowa Correspondent
 
WASHINGTON, D.C. — The Office of the U.S. Trade Representative (USTR) announced May 18 President Donald Trump intends to renegotiate the North American Free Trade Agreement (NAFTA).
 
“Today, President Trump fulfilled one of his key promises to the American people,” said USTR Ambassador Robert Lighthizer. “For years, politicians have called for the renegotiation of this agreement, but President Trump is the first to follow through with that promise.
 
“The USTR will now continue consultations with Congress and American stakeholders to create an agreement that advances the interests of America’s workers, farmers, ranchers and businesses,” he added.
 
In a letter to Congress, Lighthizer said the Trump Administration is committed to concluding the negotiations with timely and substantive results for U.S. consumers, businesses, farmers, ranchers and workers.
 
On Feb. 2, President Trump announced the United States’ intention to engage in negotiations related to NAFTA. Since then, the USTR has begun consultations with committees of jurisdiction in Congress and advisory committees, as outlined by the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA).
 
Lighthizer said these goals will be pursued consistent with U.S. priorities and the negotiating objectives established by Congress in the TPA.
 
According to the USTR, U.S. exports to Canada and Mexico support more than three million American jobs and U.S. trade with partners of NAFTA – which was established in 1994 – has unlocked opportunity for millions of Americans by supporting Made-in-America jobs and exports. 
 
As the United States’ two largest export markets, Canada and Mexico buy more Made-in-America goods and services than any other countries in the world. Since NAFTA’s implementation, U.S. states like Illinois, Ohio, Michigan, and many others, have seen a surge in exports across North American borders.
 
USDA Secretary Sonny 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,” he said. “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 the 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, the USDA will be there to sell it,” he added.
 
Chip Councell, chair of the U.S. Grains Council (USGC) and a Cordova, Md., farmer, said, “NAFTA is the most critical free trade agreement on the books for U.S. grain farmers, providing open access to countries that are among our top corn, sorghum and barley export markets as well as significant and growing markets for distiller’s dried grains with solubles (DDGS) and meat products made using grain.
 
“Our top priority in the modernization of NAFTA is to maintain this market access and keep in place what we and our customers have built,” he said. “For instance, all corn products currently go into Mexico and Canada duty-free, with sales last marketing year of $2.7 billion in commodity corn alone. That demand is an essential part of ensuring farmers can continue to farm in this economy.” 
 
Leo McDonnell, United States Cattlemen’s Assoc. (USCA) Trade Committee chair, said “Since the signing of NAFTA, U.S. cattle producers have experienced distorted and unfair trading practices with both Canada and Mexico.  The current trade disparities have resulted in economic harm over the years to cow-calf producers, backgrounders and feedlot operators.
 
“This notice triggers a 90-day consultation period in which the Administration, Congress and members of the business community can begin discussing how to best modernize the existing agreement and address the challenges faced by America’s farmers and ranchers in an increasingly global marketplace,” he added.
 
With this renegotiation of NAFTA, Roger Johnson, National Farmers Union (NFU) president, said the Trump Administration has the opportunity to reset that agenda by instituting a new, fair trade framework that works for family farmers, ranchers and rural residents.
 
“The NFU urges them to do so in a fashion that does not upset the positive trade relations the U.S. agriculture community relies upon,” he said.
 
During the past several decades, the United States has entered into free trade agreements with 20 countries, maintaining a consistent trade agreement framework that has advanced the interests of multinational corporations at the expense of family farmers, ranchers and rural workers.
 
Johnson said this free trade framework began with the United States entering into NAFTA in 1994. “NAFTA installed, and has since cemented, a set of trade parameters that have benefitted corporate America and damaged rural American communities and economies,” he said.
 
Johnson said, in his NAFTA negotiations, the president also has the opportunity to restore other facets of U.S. sovereignty, like the ability to implement Country-of-Origin Labeling (COOL).
 
“Just two years ago, a challenge from our NAFTA trading partners, Canada and Mexico, ultimately convinced Congress to repeal COOL, which was supported by more than 90 percent of American consumers,” he said.
 
“It is important that he gets this done in a manner that preserves and expands American agriculture’s trade relationships with the rest of the world, which are vital to the success of farmers and ranchers here at home,” he added.
 
But U.S. Wheat Associates (USW) and the National Assoc. of Wheat Growers (NAWG) urged caution in renegotiating NAFTA.
 
In a May 18 statement, the groups said the U.S. wheat industry welcomes the opportunity for improving the framework for cross-border wheat trade between the United States, Canada and Mexico, but would strongly oppose changes that might limit the current NAFTA’s benefits for wheat farmers and their customers – particularly in the Mexican food processing industries. “I cannot emphasize enough how important our Mexican customers are to U.S. wheat farmers,” said Jason Scott, USW chair and Easton, Md., wheat farmer. “There is nothing wrong with modernizing a 23-year-old agreement, but that must be done in a way that benefits the food and agriculture sectors in both countries.”
 
Wesley Spurlock, National Corn Growers Assoc. (NCGA) president, urged Lighthizer to remember the interests of U.S. agriculture as they begin modernizing the agreement.
 
“Exports are one pillar of a strong farm economy, accounting for 31 percent of farmer income,” he said.
 
“Nowhere is the importance of trade stronger than right here in North America. Since NAFTA was implemented, U.S. agricultural exports to Canada and Mexico have tripled and quintupled, respectively. We export billions of dollars of corn and corn products to these countries each year.
 
“The National Corn Growers Assoc. will work closely with the Trump Administration and Congress to build on the successful trade relationship we have with Canada and Mexico,” he added. “We want to ensure any updates to NAFTA maintain or increase opportunities for America’s farmers and ranchers.”
 
Lighthizer said NAFTA negotiations will begin no earlier than Aug. 16. 
5/24/2017