Tariffs on farm products traded between the two countries to remain at zero
By Diego Flammini
Staff Writer
Farms.com
Two of NAFTA’s three members have reached an understanding on a trade agreement that could benefit farmers.
The United States and Mexico yesterday announced what President Trump called the “United States-Mexico Trade Agreement.”
The deal includes new rules for cars, intellectual property and, of course, agriculture.
“Our farmers are going to be so happy,” President Trump said yesterday during a televised call with Mexican President Enrique Peña Nieto.
“You know, my farmers have stuck with me; I said we were going to do this. And Mexico has promised to immediately start purchasing as much farm product as they can. They’re going to work on that very hard.”
The agricultural portion of the trade agreement between the U.S. and Mexico covers items including tariffs, biotechnology and improving transparency.
Under the new deal, tariffs on agricultural products shipped between the two countries will remain at zero.
The U.S. and Mexico also agreed to further biotechnology information exchange including gene editing.
The two nations will work together to improve transparency to reduce any policies that could disrupt trade.
The countries agreed to “consider using domestic support measures that have minimal or no trade distorting or production effects and ensure transparency of domestic support and supply management programs,” the deal says.
The agricultural component of the trade agreement also includes a section on cheese.
Mexico and the United States agreed to cheese provisions related to geographical indication standards.
Under the trade deal, the countries will establish a mechanism to consult on geographical indication standards and consider whether a term is a common name instead of a geographical indicator. The deal also means Mexico will not restrict access for some U.S. cheeses based on the label.
The American Farm Bureau Federation (AFBF) is pleased with the progress between Mexico and the U.S.
“Open markets and good trade agreements will give American agriculture the opportunity to be part of this booming economy,” Zippy Duvall, President of the AFBF, said in a statement Monday.
And while a bilateral trade agreement with Mexico is a good start, adding Canada to the agreement would be a boost for American ag.
“We need negotiators to convince Canadian officials that they, too, will benefit from a revised treaty,” Duvall said. “We are hopeful that the value of a continued and improved NAFTA for all will bring everyone back to the negotiating table.”
Chrystia Freeland, Canada’s Foreign Affairs Minister, is in Washington D.C. to negotiate on Canada’s behalf.
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