Ag experts laud trade between U.S., Canada and Mexico

Published 9:00 am Tuesday, January 23, 2024

Prominent disputes over genetic engineering with Mexico and dairy policy with Canada shouldn’t sour U.S. farmers on trilateral North American trade, several experts say.

“I’ll take the issues. Let’s get the trade,” said Dave Salmonsen, senior director for government affairs and trade negotiator with the American Farm Bureau Federation.

Salmonsen was joined by embassy officials from Mexico and Canada in lauding the trade relationship among the three countries during AFBF’s annual convention in Salt Lake City, Utah, Jan. 21.

“There are more things that make us alike than make us different,” said Brenda Martinez Vegara, a trade specialist with the Mexican Embassy in Washington, D.C. “It’s very important for us to learn from each other.”

While conflicts inevitably arise under the U.S.-Mexico-Canada Agreement, or USMCA, it’s nonetheless bolstered the continent’s agricultural economy on the whole, according to the panel.

“We need reliable trade partners. Who better than your neighbors to the north and south?” Vegara said. “Sometimes along the way, we forget about that: the concept of North America.”

While the three countries have long existed side-by-side, trade was historically limited by strict barriers, said Salmonsen of AFBF. It wasn’t until three decades ago, with the passage of the North American Free Trade Agreement, that trade really began surging.

NAFTA has since been updated to become the USMCA, whose functioning will be reviewed by the three countries in two years, he said.

Despite these strong commercial ties, the U.S. doesn’t see eye-to-eye with Canada about a dairy import policy that it claims is unfairly skewed to benefit that country’s milk processors. Late last year, a trade dispute settlement panel sided with Canada in the disagreement.

Similarly, the U.S. alleges that Mexico isn’t complying with the terms of USMCA by imposing restrictions on biotech corn without a valid scientific rationale.

The agreement’s current performance will be evaluated and possibly lead to revisions, but those spats don’t detract from the underling value of having an agreement, said Salmonsen of AFBF.

“You have to have this process to be able to resolve issues,” he said. “These are commercial entities trying to do business. There are always disputes.”

It’s only normal for trade partners to seek advantages, which is acceptable as long as they abide by rational conventions that level the playing field, Salmonsen said.

“We need to ensure we have science-based standards that allow trade to flow,” he said.

Not only do finished products regularly cross borders, but raw materials are sent from one country to another for processing, said Christine McKee, an agriculture counselor at the Canadian Embassy in Washington, D.C. The expanded availability of products benefits consumers across North America.

Growers in the three countries can also benefit from cooperation on common North American problems, such as the need for adequate labor, planning for farm succession and adapting to changing consumer expectations, McKee said.

“Those are the exact same issues we face back home,” she said. “We’re stronger together and we need to keep a good thing growing.”

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