Former U.S. Secretaries of Agriculture call on Congress to pass USCMA

While the prospects for the United States Canada Mexico Agreement (USCMA) remain murky, that has not led to various concerns ringing the bell for it to be signed into law.

That was made clear last week in the form of a letter penned last week by all former United States Secretaries of Agriculture going back the President Reagan’s Administration–– Secretary Tom Vilsack (2009-2017) Secretary Ed Schafer (2008–2009) Secretary Mike Johanns (2005–2007) Secretary Ann Veneman (2001–2005) Secretary Dan Glickman (1995–2001) Secretary Mike Espy (1993–1994) Secretary John R. Block (1981–1986)––to Speaker Nancy Pelosi, Minority Leader Kevin McCarthy, Majority Leader Mitch McConnell and Minority Leader Chuck Schumer.

USMCA, in various ways, is actually based on the same rules and procedures and most of the same products, as the current North American Free Trade Agreement NAFTA), which took effect in 1994. Analysts say that there are some great environmental and labor regulation improvements, and it incentivizes domestic production of cars and trucks. It’s also the first free trade agreement that has ever included intellectual property protections, which are very timely given the current trade wars that were triggered by the alleged theft of American intellectual property by China and other nations.

The former Secretaries of Agriculture were direct in making their collective case for USCMA to be inked into law.

“We need a strong and reliable trade deal with our top two customers for U.S. agriculture products. USMCA will provide certainty in the North American market for the U.S. farm sector and rural economy,” the letter said. “We strongly support ratification of USMCA.”

The letter also explained that the former Secretaries believe USCMA will benefit American agriculture and related industries.

“With Canada and Mexico being the first and second largest export markets for U.S. agricultural products, we believe USMCA makes positive improvements to one of our most critical trade deals,” they said. “Currently, NAFTA supports more than 900,000 jobs in the U.S. food and agriculture sector and has amplified agricultural exports to our North American neighbors to $40 billion this past year. Before NAFTA went into effect in 1994, we were exporting only $9 billion worth of agricultural products to Canada and Mexico. The International Trade Commission’s recent economic analysis concluded that USMCA would benefit our agriculture sector and would deliver an additional $2.2 billion in U.S. economic activity.”

What’s more, the letter pointed out that U.S. farm production exceeds domestic demand by 25%. And it added that agricultural exports account for 20% of farm income and support more than 1 million jobs.

“By increasing agricultural exports, this will generate more farm production, which is a major engine of U.S. economic growth, the letter said. “The food and agriculture industry is worth $1 trillion, which is 5 percent of the U.S. gross domestic product. With farmers facing one of the lowest net farm incomes in the last decade, USMCA would create enhanced export opportunities and help fully capitalize on increased global demand for food products. Furthermore, USMCA would significantly boost farm incomes and create jobs both on and off the farm in rural communities.”

In recent days, news surrounding impeachment proceedings regarding President Trump has clouded the potential and the timeline for USCMA to come to fruition. That was made clear, with President Trump saying this week that it is unclear if House Speaker Pelosi will have the opportunity to sign it into law while the proceedings are ongoing.

Neil Bradley, executive vice president and chief policy officer for the United States Chamber of Commerce, made it very clear that the time to move on USCMA is now.

“The American people expect their elected officials to walk and chew gum at the same time,” Bradley said in a statement. “It is imperative for our economy that lawmakers and the administration keep moving forward on and complete enactment of USMCA. There are no excuses for inaction.”