Issues: USMCA

On ___________, Canada joined the U.S. and Mexico in the successor to NAFTA, the U.S.- Mexico - Canada Agreement (USMCA).

September 30, 2018

NAFTA removed barriers to intraregional trade, including agricultural products traded between Mexico and the U.S. and most agricultural products traded between the U.S. and Canada since it was implemented in

1994.

Agricultural exports from the U.S. to Canada and Mexico increased from $8.9 billion in 1993 to $39 billion in

2017.

The _______ not only locks in market opportunities previously developed with our North American neighbors, but also builds on those trade relationships in several key areas.

USMCA

is a comprehensive economic and trade agreement that established a free-trade area between the U.S., Canada and Mexico.

NAFTA

Tariff elimination between the United States and Canada did not extend to Canadian imports of

dairy and poultry products.

for these products were established to comply with WTO requirements. Tariffs were eliminated for all products between the U.S. and Mexico

Tariff-rate quotas (TRQs)

In the new USMCA, _________ has agreed to phase-in increased quota access for U.S. dairy products (fluid milk, cream, butter, skim milk powder, cheese and other dairy products) and for chicken, eggs and turkey.

Canada

The increased dairy access 100,000 metric tons annually is estimated to be worth .

$242 million

The new amounts will be reached by year ____ of the agreement.

six

There will then be one percent growth per year for an additional 13
years. The U.S. now exports __________ in dairy products to Canada annually.

$619 million

Canada has also agreed to end their Class 7 pricing scheme, within ______ months of the implementation of the USMCA.

six

A substitute pricing formula for skim milk solids used to produce nonfat dry milk (NFDM), milk protein concentrate, and infant formula will set prices no lower than a level based on the ______ for non-fat dry milk.

U.S. price

A 55,000 metric tons limit is placed on exports by Canada of skim milk powder and milk protein concentrate the first year of implementation, falling to _______ metric tons per year thereafter.

35,000

Canada also agreed to treat wheat imports in the same manner as _________ for grading and pricing.

domestic wheat

The Chapter 19 dispute settlement procedures will be retained in the

new agreement.

A U.S.-Mexico Trade Agreement was announced by President _____ on August 27, 2018.

Trump

This agreement includes higher US-Mexico content levels for autos, from 62.5 percent to 75 percent, and a six year review of the agreement instead of a hard

sunset.

Agricultural tariffs between the U.S. and _______ will remain at zero. Provisions regarding biotechnology and geographic indications are included.

Mexico

The chapter on ________ includes scientifically based, nondiscriminatory and transparent food safety standards. The steel and aluminum tariff issues are not covered in the agreement.

Sanitary/Phytosanitary Standards (SPS)

On September 30, 2018, the U.S.-Mexico-Canada Preliminary Agreement in Principal on NAFTA Renegotiation was concluded. The agreement will be signed by the three countries on
________________ Congress can then consider the agreement.

November 30, 2018.