New trade deal reached between U.S., Mexico, Canada

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NAFTA negotiations have finally ended when Canada signed on to a new trade deal with the U.S. and Mexico late Sunday night, hours before a midnight deadline.    

Canada agreed to join a new trade deal with the U.S. and Mexico, replacing NAFTA with the “United States-Mexico-Canada Agreement.”

“This is a very very good deal for all three. It puts us in a position that we’ve never been in before,” said President Donald Trump.

President Trump called it the biggest trade deal in U.S. history. It allows U.S. farmers greater access to the Canadian dairy market and addresses Canadian concerns about the threat of U.S. auto tariffs.

“This is a very very big deal for our farmers. Mexico and Canada will open up a lot more than they are now. And I think there will be a better spirit between the three countries, which is important for our farmers,” Trump said.

The president said he plans to sign the deal in October and send it to Congress for the final approval.

Kansas Republican Congressman Ron Estes says he supports the new deal.

“It’s great news. We’ve talked about this a long time, it’s a long time coming,” Estes said. 

Estes says “USMCA” is a win for agriculture and he hopes his colleagues approve it quickly.

“I’d hate to see it drag out through Congress just because somebody wants to tweak and make some advantage for a particular industry or group,” said Estes.

But Texas Democratic Congressman Lloyd Doggett says he’s not totally on board. He says he thinks some language still needs to change. But he hopes the three countries can come to an agreement. 

Multiple politicians of Iowa, Nebraska, and South Dakota gave statements after the passing of the “USMCA.”

Iowa Gov. Kim Reynolds:

I am excited to hear news of this United States-Mexico-Canada agreement.

NAFTA has been good for agriculture, but a modernized agreement could provide better gains for Iowa farmers. Strengthening trade with Canada and Mexico provides more certainty to our Iowa farmers and the agribusinesses sector.

I am also encouraged by agreements reached with Argentina and KORUS, by continued discussions with the EU and by reignited negotiations with Japan. Our farmers and manufacturers need access to free and fair trade to sell their products, which are among the best in the world.

As a steadfast champion for Iowa agriculture and Iowa products, I will continue to advocate for increased opportunities to market our products around the globe. It is my hope the momentum generated today will provide more certainty for our farmers during this harvest.

Last year, 30.58% of Iowa’s exports went to Canada and 16.94% went to Mexico, making them our two largest trading partners. Canada and Mexico were in the top five importers of Iowa manufactured goods and value-added agricultural products, and they were No. 1 and No. 2 for agriculture.

Republican Sen. Chuck Grassley of Iowa: 

I commend President Trump for his commitment to securing a better trade deal for America that includes both Mexico and Canada. This new deal increases market certainty for our farmers, provides strong and effective protection for American intellectual property and strengthens overall relations with our North American trading partners. I look forward to seeing the details of this new agreement. I’m optimistic for its positive impact for Iowa farmers, agricultural workers and manufacturers.

Republican Sen. Joni Ernst of Iowa: 

This trade deal is welcome news for Iowa farmers and ranchers, who for too long have suffered from the ongoing trade disputes and plummeting commodity prices. President Trump is making good on his promise to get deals done that will boost confidence, provide certainty and unleash optimism across farm country in Iowa and the rest of the U.S.

Mexico, Canada and the U.S. make up one of the most competitive and successful regional economic platforms in the world.  I’ve been pushing the Administration to finalize pending trade deals, and they have done just that; I look forward to reviewing the deal in full, and understanding its impact on Iowa’s economy including manufacturing and other industries.

Nebraska Gov. Pete Ricketts:

President Trump has delivered on his promise to finalize a new trade deal with Canada and Mexico,” said Governor Ricketts.  “The importance of this new deal to Nebraska cannot be overstated.  These two countries are top customers for Nebraska, and are critical markets for growing trade opportunities.  This new deal makes progress in the three areas Nebraska’s leaders outlined for trade negotiations with these countries over a year ago.  Most importantly, it helps give Nebraska’s farmers and businesses much-needed certainty, and will help us grow these important trade relationships for years to come.

Republican Sen. Deb Fischer of Nebraska:

Mexico and Canada are Nebraska’s two largest trading partners. I’m grateful to President Trump for following through on his commitment to negotiate a better trade deal between our three countries. I’m optimistic this agreement will bring good opportunities to Nebraska producers and our state.

Republican Rep. Adrain Smith of Nebraska also sits on the House Ways and Means Committee: 

I’m very pleased to hear the administration has come to an agreement with Mexico and Canada to update NAFTA with a new US-Mexico-Canada Agreement (USMCA) which builds on its successes. I have long supported a three-country agreement because it is vital to Nebraska’s agricultural producers and to our rural economy. I look forward to considering USMCA as Congress studies the details and I commend President Trump’s team for their success in reaching this point.

Republican Sen. John Thune of South Dakota: 

Throughout this process, I’ve always believed a trilateral agreement would best serve American businesses, particularly South Dakota’s farmers and ranchers who depend on exporting a significant share of their products to Canada and Mexico,” said Thune. “While I’m still reviewing the details of the agreement, an improved NAFTA would be good for businesses, consumers, and the economy, and I hope we can continue pursuing pro-America trade deals with other countries around the world.

Republican Rep. Kristi Noem of South Dakota also voiced her support of the agreement.  Noem sits on the House Ways and Means Trade Subcommittee, which has primary jurisdiction over trade issues in the U.S. House: 

For the last year, I have been pressing President Trump and U.S. Trade Representative Lighthizer to finalize an agreement that works better for South Dakota agriculture – and finalize it quickly. We have met on several occasions to discuss the dire situation producers are in as a result of poorly negotiated trade deals and the changes needed. I am pleased the pressure we put on this administration has resulted in a preliminary deal. I will be reviewing the details of this agreement closely, but I’m optimistic we are headed toward an agreement that treats South Dakota agricultural goods more fairly, expands market access, and sets unprecedented standards for science-based sanitary and phytosanitary measures. I will continue weighing in with the Trump administration as this process advances, but I’m hopeful we’re on the cusp of a better deal for American manufacturing and agriculture.

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