Washington D.C. - U.S. producers are cautioning that proposed tariffs by former President Trump could undermine their access to key export markets in Canada and Mexico, despite gains made under the USMCA trade agreement. Concerns voiced at a recent hearing before the U.S. Trade Representative’s office centered on enforcement of existing commitments and the potential for new trade barriers.
The warnings span multiple agricultural sectors, from dairy and beef to spirits, highlighting the delicate balance between securing favorable trade terms and maintaining established market access. While the USMCA aimed to level the playing field, industry representatives argue that ongoing issues with implementation-notably regarding dairy trade with Canada and standards enforcement in Mexico-threaten to erode the benefits of the agreement.
“We need to hold the Mexican government accountable for making sure that they enforce the standards,” said Koukoulis.
Canada’s dairy sector drew particular criticism for its protectionist practices. ”In contrast to Mexico, Canada has always been a particularly challenging dairy trading partner,” said Shawna Morris, executive vice president of the National Milk Producers Federation and the U.S. Dairy Export Council. Morris further stated, “Regrettably, Canada has a long history of working to identify and exploit loopholes in its dairy trade commitments rather than abiding by them in good faith.”
Becky Rasdall Vargas, senior vice-president of the International dairy foods Association, urged the preservation of positive aspects of the USMCA while addressing perceived violations. She asserted that Canada’s implementation “has actually limited U.S. dairy exporter access to the Canadian market rather of improving it as was intended.”
U.S. beef producers advocated for mandatory country of origin labeling in any renewed agreement, while a representative from the distilled spirits sector requested the inclusion of geographic designations to protect products like American bourbon, Canadian rye, and Mexican tequila and mescal. the hearing underscores the ongoing complexities of trade relations with North American partners and the potential impact of shifting trade policies on U.S. agricultural interests.
