The Department of Agriculture (USDA) highlighted eight advantages that the Agreement between Mexico, United States and Canada (USMCA) offers to US exporters.
Canada and Mexico are the top export markets for U.S. agriculture, with a combined total of $ 40.1 billion in 2019.
In fact, more than 29% of all US food and agricultural exports went to the Mexican and Canadian markets last year.
According to the USDA, the USMCA will further enhance a good business relationship, ensuring preferential market access for US exporters and consolidating commitments to fair and science-based trade rules.
For the first time, the agreement specifically addresses agricultural biotechnology, including new technologies such as gene editing, to support innovation and reduce trade-distorting policies.
Another advantage for US exporters is that the agreement institutes a more rigorous process for establishing geographical indications (GIs) and establishes additional factors that must be taken into account in determining whether a term is a common name.
The three countries agree to strengthen disciplines for science-based measures that protect human, animal and plant health while enhancing trade flow.
US milk exporters will have new market opportunities in Canada for a wide variety of dairy products. Canada also agreed to eliminate the milk price program that allowed its farmers to sell less to US producers.
Birds and eggs
US poultry producers will have new access to Canada for chicken and eggs, and expanded access for turkey.
Canada agreed to end its wheat grading system, allowing US producers along the border to be more competitive.
Wines and spirits
The three countries agreed to avoid technical barriers to trade through non-discrimination and transparency in the sale, distribution, labeling and certification of wines and distilled spirits.
One more advantage for US exporters is that the agreement updates the rules of origin for processed fruits to ensure that preferences benefit US producers.