This week, the USDA's Foreign Agricultural Service (FAS) released its 2020 U.S. Agricultural Export Yearbook, a statistical summary of U.S. agricultural commodity exports. Today's update includes highlights from the report, with a focus on soybeans, corn and pork.
Just one day after the U.S. and China signed a Phase One trade deal, the Senate passed the U.S.-Mexico-Canada Trade Agreement (USMCA).
One of the greatest trade deals ever made! Also good for China and our long term relationship. 250 Billion Dollars will be coming back to our Country, and we are now in a great position for a Phase Two start. There has never been anything like this in U.S. history! USMCA NEXT!— Donald J. Trump (@realDonaldTrump) January 16, 2020
Wall Street Journal writer William Mauldin reported on Thursday that, “The U.S. Senate easily passed an overhaul of North America’s trade rules on Thursday, sending a major Trump administration priority to the president’s desk.
“The Senate voted 89 to 10 in support of the U.S.-Mexico-Canada Agreement, which replaces the 26-year-old North American Free Trade Agreement. The pact updates trading rules in the continent to address 21st-century technology, safeguard environmental and labor standards in Mexico and toughen requirements for auto-industry trade among the three countries.
“Notably, the vote reassures farmers, manufacturers and other businesses that tariff-free trade will continue in North America. President Trump repeatedly threatened to pull the U.S. out of Nafta if Canada, Mexico and lawmakers on Capitol Hill didn’t commit to an overhaul of the deal originally passed during the Clinton administration, and congressional passage helps the president fulfill a top campaign promise from 2016.”
The farmers are really happy with the new China Trade Deal and the soon to be signed deal with Mexico and Canada, but I hope the thing they will most remember is the fact that I was able to take massive incoming Tariff money and use it to help them get through the tough times!— Donald J. Trump (@realDonaldTrump) January 16, 2020
The Journal article noted that, “The House last month approved legislation to implement USMCA by a 385 to 41 vote, with 193 Democrats and 192 Republicans backing the pact.”
Mr. Mauldin added that, “Mexican legislators last month approved the new version of USMCA, and Canadian Prime Minister Justin Trudeau acknowledged last month that Canada would likely be the last country to ratify the revised North American trade deal. Canada’s parliament, which had an election in October, isn’t scheduled to return until Jan. 27.”
BIG wk for @realdonaldtrump &his trade deals gr8 victories w China phase 1 + 2day USMCA passed Senate w overwhelming bipartisan vote 89-10 I was glad 2lead this effort in Senate wrking in bipartisan way 2deliver much needed certainty for American farmers + manufacturers + workers— ChuckGrassley (@ChuckGrassley) January 16, 2020
Washington Post writers Erica Werner and Rachel Siegel reported on Thursday that, “[Pres.] Trump must still sign the revised North American Free Trade Agreement, something he suggested he would likely do next week.”
. @realDonaldTrump scored his second trade victory this week with the passing of the #USMCA in the Senate Thursday.— Squawk Box (@SquawkCNBC) January 17, 2020
"Wheat and dairy are two big winners," says Former Agriculture Secretary Tom Vilsack. pic.twitter.com/4lCdZSFUw2
The Post article noted that, “Thursday’s vote came a day after Trump signed a partial economic deal with China, nearly two years into a protracted trade war with Beijing. As part of the deal, China committed to purchasing an additional $200 billion in American exports above previous levels.
With the USMCA vote, Trump has back-to-back victories on trade that may calm the waters after the president has provoked trade wars around the global and leveled tariffs on friends and foes.
Werner and Siegel explained that, “USMCA also gives American dairy farmers more access to the Canadian market, especially for ‘Class 7’ milk products like milk powder and milk proteins. The deal puts some restrictions on how much dairy Canada can export, which could help American dairy farmers edge into foreign markets.”
And New York Times writer Emily Cochrane reminded readers on Thursday that, “While U.S.M.C.A. sailed through both the House and Senate, its approval was far from guaranteed a year ago, when Mr. Trump initially signed an agreement with Mexico and Canada.”
More broadly, Sabrina Rodriguez reported at Politico on Thursday that, “But above all, lawmakers, economists and trade experts have emphasized that the new deal offers some much-needed certainty for companies and workers in all three countries. Trump had long threatened to withdraw from the original NAFTA, a move that would have devastated the economies of all three countries.”