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Secretary Perdue Comments on Conclusion of USMCA Negotiations

10/04/2018

On October 1, U.S. Secretary of Agriculture Dr. Sonny Perdue commented on the conclusion of a renegotiated U.S.-Mexico-Canada Agreement (USMCA) to replace NAFTA.

 

He stated, “The great news from a new USMCA deal is that it is important for our economy as a whole, including the agriculture sector, which counts Canada and Mexico in our top three trading partners.”  He added, “We have secured greater access to these vital markets and will maintain and improve the highly productive integrated agricultural relationship we have as nations.”  The deal eliminated Canada’s unfair “Class 7” milk pricing scheme and imposed restrictions on the supply management system.  Access for turkey, broiler, and egg producers is incorporated in the agreement as noted in concurrent additions of EGG-NEWS and CHICK-NEWS.

Specific provisions of the USMCA agreement include:

 

  • Dairy farmers will achieve expanded market access with elimination of Class 6 and
      Class 7 products.
     
  • Standards for agriculture biotechnology will be established including gene editing, information exchange and cooperation on agricultural biotechnology.
     
  • A commitment to reduce trade-distorting policies including transparency and the exercise of non-discriminatory treatment of standards for agricultural products.
     
  • The three nations agreed to eliminate export subsidies or World Trade Organization special agriculture safeguards for products traded within the USMCA Nations.
     
  • Establishing strong rules to ensure tariff-rate quotas are administered fairly and with transparency
     
  • Harmonization of grading standards and ongoing dialogue with respect to standards
     
  • Market access for U.S. cheese shipped to Mexico will not be restricted
     
  • The three nations have agreed to protect confidentiality of proprietary formulas for food products