The benefits of the United States-Mexico-Canada Agreement (USMCA) are hard to deny. Kenneth Smith Ramos, a former lead negotiator for the Mexican government who was deeply involved in the negotiation and ratification of USMCA, discussed the mutual benefits USMCA has delivered for the agricultural sectors in both the U.S. and Mexico during the recent USMEF Strategic Planning Conference. Not only has the agreement enhanced food security in both countries, but he said it has also bolstered the profitability of many agricultural sectors through free trade.
The U.S., Canada and Mexico are scheduled for a joint review of the trade agreement in July. Smith, who is now a partner in the regulatory and trade consulting firm AGON, says the possible outcomes of the USMCA review range from a very limited review to the threat of “rupture” if the agreement is reopened and the U.S. threatens to withdraw. He said he anticipates something in between, with portions of USMCA – some of which may be contentious – opened up for renegotiation.
“We see a complex USMCA review, but we do not see a scenario where there is an imminent collapse of the agreement,” Smith said during the conference. “There will be turbulence, but we do not see the plane crashing.”
Smith added that it is critical for the U.S., Mexican and Canadian agricultural sectors to remain vigilant in explaining the benefits of USMCA and the importance of maintaining it as a trilateral pact.
Much Needed Certainty
Congressional Agriculture Trade Caucus cochairs Reps. Jim Costa (D-CA), Dusty Johnson (R-SD), Jimmy Panetta (D-CA), and Adrian Smith (R-NE) led more than 100 members of the House of Representatives in urging the Office of the U.S. Trade Representative to “carefully” examine changes to USMCA.
“USMCA was truly a landmark agreement for American Agriculture when it entered force, and its positive impact on U.S. agriculture has yet to reach its maximum benefit,” the members wrote. “At a time when economic challenges threaten the livelihood of family farms, producers need the certainty provided under USMCA more than ever.”
In the Nov. 20 letter to USTR Ambassador Jamieson Greer, the lawmakers said the outcome of the review should advance American agriculture and food production. They asked the trade agency to “work closely with Congress and consider the significant positive impact North American trade has on our communities. Any changes to the agreement should be carefully examined to ensure U.S. agriculture is not negatively impacted.”
Lawmakers pointed out that USMCA streamlined compliance measures and harmonized regulations, thereby generating cost savings for U.S. farmers, producers, and ranchers. In 2024, the U.S. was the world’s largest agricultural exporter, with total ag exports valued at $176 billion.
“The agriculture section of the USMCA provides much needed certainty within North America through its tough and effective rules on sanitary and phytosanitary measures, agricultural biotechnology, intellectual property, and technical barriers to trade,” the letter said. “U.S. agricultural exporters depend on the binding nature of these provisions to access our closest markets and make sales, which has directly benefited the farmers, ranchers, and producers that we represent. Further, these rules-based, science-driven commitments set a strong example for other trading partners hoping to achieve similar access to the U.S. market.”
Earlier this month, the National Pork Producers Council and more than 125 agriculture and food organizations also urged USTR to be cautious in making changes to USMCA, which they said has facilitated and streamlined the flow of commerce throughout the three countries. The positive impact USMCA has had on U.S. agriculture, they added, “has yet to reach its maximum benefit. At a time when economic challenges threaten the livelihood of family farms, producers need the certainty provided under USMCA more than ever.”
“U.S. pork producers export over 25% of their pork,” NPPC noted in Capital Update. “With Mexico and Canada as their first and fourth largest export markets, respectively, USMCA has provided continuity and removed market uncertainty in those markets.”
Gregg Doud, president and CEO of the National Milk Producers Federation pointed out that USMCA has delivered real value for America’s dairy farmers.
“While several dairy compliance issues remain to be addressed in the 2026 Joint Review, the duty-free trade into Mexico that USMCA preserved has allowed U.S. dairy exporters to partner with Mexico to meet growing demand,” Doud said.
Read More:
No Trade Agreement Can Boast the Success of USMCA, The Meat Institute Says
