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Trump Negotiates Trade Deal To Replace NAFTA

Trump Negotiates Trade Deal To Replace NAFTA
October 4, 2018 |

The Alabama Farmers Federation joined U.S. farm groups in praising progress on trade agreements.

President Donald Trump has announced a renegotiated trade deal with Canada, which would replace the North American Free Trade Agreement (NAFTA) with the U.S.-Mexico-Canada Agreement (USMCA). The U.S. and Mexico agreed to trade terms in August.

The Canada agreement comes on the heels of a new South Korean trade deal.

The USMCA will provide new access for dairy and poultry products. The agreement eliminates aspects of Canada’s dairy program used to undercut U.S. sales of dried milk products. U.S. dairy products will gain access to an additional 3.6 percent of Canada’s dairy market.

Canada will also grade imports of U.S. wheat in a manner no less favorable than their own. Mexico and the U.S. agreed all grading standards for agricultural products will be non-discriminatory. 

Congress must still consider and approve the USMCA, most likely in 2019.

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