Published on Feb. 1, 2020
A longtime critic of the original North American Free Trade Agreement, Donald Trump officially signed into the law the new and improved U.S.-Mexico-Canada agreement to take its place, effectively securing long-term trade certainty with Mexico and Canada.
“Today we’re finally ending the NAFTA nightmare and signing into law the brand new United States-Mexico-Canada Agreement,” Trump said at the signing event. “USMCA is the largest fairest, most balanced and modern trade agreement ever,” he said. “This is a colossal victory for our farmers, ranchers, energy workers, factory workers and American workers in all 50 states.”
Under USMCA, all food and agricultural products that have zero tariffs under NAFTA will remain at zero tariffs, and the new trade deal will create new market access opportunities for U.S. exports to Canada of dairy, poultry and eggs, according to the USDA. In exchange, the U.S. will provide new access to Canada for some dairy, peanut and a limited amount of sugar and sugar-containing products.
“Today is a good day for American agriculture,” Agriculture Secretary Sonny Perdue said in a statement. “I am excited to see the economic benefits of this agreement increase the prosperity of all Americans, especially those living in rural America,”
While Trump’s action is the final step needed for the agreement to become law in the U.S., Owen said that Canada’s Parliament has yet to approve it.
After all three countries have signed,the agreement will go into effect, or replace NAFTA, on the first day of the third month after the final signature is received.