June 21, 2017

US, Canada, Mexico affirm commitment to NAFTA amid renegotiation talks

The three signatory countries to the North American Free Trade Agreement (NAFTA) on Tuesday, June 20, reaffirmed their commitment to "keeping our markets open…so that trade can continue to grow".

Canadian Agriculture and Agri-Food Minister Lawrence MacAulay; Mexican Agriculture, Livestock, Rural Development, Fisheries and Food Secretary of Jose Calzada; and US Agriculture Secretary Sonny Perdue said in a joint statement:

"Our three nations are connected not only geographically, but through our deeply integrated agricultural markets. Our trading relationship is vital to the economies-and the people-of our respective countries. We are working together to support and create good jobs in all three countries. We share a commitment to keeping our markets open and transparent so that trade can continue to grow".

The statement-issued on the second day of the two-day Trilateral Agriculture Meetings in Savannah, Georgia, USA-said that NAFTA "has greatly helped our respective agricultural sectors as well as our consumers who have benefitted from an ever-growing variety of safe, affordable food products all year around".

"While even the best trading partnerships face challenges from time to time, our agricultural differences are relatively few in the context of the $85 billion in agricultural trade that flows between our three nations each year", it added.

The statement said that the US, Canada and Mexico "remain committed to continued collaboration to ensure a safe and reliable regional supply chain that makes the North American agriculture sector more competitive".

"Our visit to Georgia fostered the mutual understanding and personal relationships that will help North American agriculture thrive, improve our regional partnership and collaboration, and strengthen our trading relationship", the three officials concluded.

Last month, the Trump administration notified Congress that the US planned to renegotiate the NAFTA.

It is believed that a renegotiation has the potential to considerably impact the pig industry and open more markets to Mexico, the fourth-largest global importer of chilled and frozen pork.

In the event of a NAFTA dissolution, US milk producers would also face lower prices, likely back down to 2009 lows, as domestic supply would pile up and exporters would need to find new markets, which would take time and money, according to an analysis by agricultural lender Rabobank. -Rick Alberto