ARLINGTON, Va., July 1, 2020 – The National Grain and Feed Association (NGFA) said the U.S.-Mexico-Canada Agreement (USMCA), which enters into force today, is a model 21st century trade accord that will contribute to growing, robust North American trade and serve as a strong foundation for the next generation of trade agreements.
NGFA commended and congratulated the U.S., Mexican and Canadian governments for negotiating a modernized North American trade agreement, as well as the legislative chambers in all three countries that ratified it by strong, bipartisan votes. For grains, oilseeds and their derived products, as well as animal food, the USMCA “preserves and strengthens market access while providing effective new mechanisms and safeguards to resolve sanitary and phytosanitary (SPS) issues that in the past periodically have disrupted trade,” said NGFA President and CEO Randy Gordon. “But the accord’s longest-lasting and most important impact may well be the solid framework it provides for the United States to negotiate significant new trade agreements with other countries, including Japan, Vietnam, the United Kingdom, Kenya and other nations on the African continent.”
NGFA noted that in addition to maintaining a tariff-free environment for most agricultural products, USMCA will help address non-tariff barriers, which are among the biggest challenges that distort and disrupt cross-border trade flows. Among other benefits, USMCA contains provisions that provide for: greater levels of regulatory coherence and cooperation; expediting resolution of adverse import checks; reducing the likelihood of trade disruptions in products of agricultural biotechnology; providing for expedited technical consultations to resolve SPS disputes; and requiring that SPS standards be grounded in science, based on proper risk assessments and implemented using prudent risk-management techniques.
Read more about USMCA here.
NGFA will be working with its member companies and the U.S. government to monitor compliance with the agreement.
The NGFA, established in 1896, consists of more than 1,000 grain, feed, processing, exporting and other grain-related companies that operate more than 7,000 facilities and handle more than 70 percent of all U.S. grains and oilseeds. Its membership includes grain elevators; feed and feed ingredient manufacturers; biofuels companies; grain and oilseed processors and millers; exporters; livestock and poultry integrators; and associated firms that provide goods and services to the nation’s grain, feed and processing industry. The NGFA also consists of 33 affiliated State and Regional Grain and Feed Associations, and is co-located and has a strategic alliance with North American Export Grain Association, and a strategic alliance with the Pet Food Institute.