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USMCA Goes Into Effect, Expected to Lift Ag Exports by $2B Per Year

After being signed on November 30, 2019, the United States-Mexico-Canada Agreement (USMCA) took effect on July 1. Expectations are that the trade deal will increase agricultural exports by $2 billion per year and contribute to an overall increase of $65 billion to the U.S. GDP, according to the American Farm Bureau Federation. Key factors of the agreement include:

  • Elimination of Canada’s milk classes 6 and 7

  • Expanded market access for U.S. dairy, poultry, and eggs

  • Greater cooperation on ag biotechnology

  • Equal quality grading for U.S. wheat, and

  • Transparency and non-discrimination commitments for the sale and distribution of alcoholic beverages

The agreement is also being hailed by the American Soybean Association, saying it “restores certainty and stability to two important export markets for our farmers and lays a foundation for future growth.”

The National Wheat Growers Association, the National Grain and Feed Association, the U.S. Wheat Associates, and the Meat Institute have all also issued statements in support of the agreement.

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