USMCA Takes Effect Today, Grassley Comments

The U.S.-Mexico-Canada Trade Agreement takes effect today, replacing the outdated North American Free Trade Agreement. The chairman of the Senate Finance Committee that shepherded the deal to its final passage is hailing its benefits for agriculture.

Chairman Chuck Grassley says USMCA, which President Trump sought to replace NAFTA, will end 30 years of Canada blocking imports of U.S. wheat, dairy, and poultry, deal with Mexico’s trade barriers, and more.

“This new agreement will provide certainty to our farmers and ranchers, and update NAFTA in other important areas. And I’ve already mentioned the digital economy, but also, customs, sanitary and phytosanitary measures, and technical standards. And it even helps on intellectual property.”

USMCA will also give the U.S. tools to deal with continuing trade problems. House Ag Chair Collin Peterson spoke at a virtual roundtable later in the day.

“There are some troubling signs out there of people using COVID as a reason to put up trade barriers. We see some ‘monkey business’ going on in Mexico. We continue to learn about the Canadians and what they’re up to with dairy policy. So, we need to be vigilant and we need to make sure that the agreement is enforced.”

Senator Grassley echoed the concern about Mexico.

“That country has quit approving biotech traits for U.S. companies. And they have offered no satisfactory explanation for the lack of approvals. And so, I expect the U.S. Trade Representative to aggressively and fairly use the tools of dispute settlement.”

Separately, Grassley says he’ll join fellow Iowa Republican Senator Joni Ernst in blocking a Trump nominee to be EPA deputy until EPA explains its plans for 52 small oil refinery retroactive ethanol waiver requests.

“Oh, yes. I think we’ve been playing around too much with all this stuff.”

Grassley says he met with the nominee Doug Benevento and EPA Administrator Andrew Wheeler, recently, but wouldn’t give details on the meetings.