ICYMI: U.S.-Mexico Trade Agreement Announced; Work Continues On New Trilateral NAFTA

Aug 31, 2018

The United States and Mexico announced on Monday a preliminary U.S.-Mexico Trade Agreement that modernizes provisions of the existing North American Free Trade Agreement (NAFTA), clearing a major hurdle toward a new, trilateral trade agreement with two of the largest buyers of U.S. coarse grains and co-products.

The new agreement came after five weeks of intensive negotiations in Washington between U.S. and Mexican officials. While Canadian officials have not been involved in the recent talks, Canadian Foreign Minister Chrystia Freeland is in Washington, D.C., at press time, working with her counterpart, U.S. Trade Representative Robert Lighthizer, to hammer out an agreement that would allow the northern neighbor to join the new pact.

“We are grateful for news today that the United States and Mexico have reached an agreement that will keep NAFTA modernization efforts moving,” said U.S. Grains Council President (USGC) and CEO Tom Sleight in a statement about the announcement on Monday. “This agreement is a major step forward for our relationship with Mexico and is a result of hard work over the last year to closely examine our vital partnership.”

The U.S.-Mexico agreement would benefit American farmers, ranchers and agribusinesses by maintaining key provisions of the existing NAFTA and expanding access, notably through technical exchanges.

The agreement would:

keep existing tariffs at zero on agricultural products traded between the United States and Mexico, critical for the U.S. grains industry that counts Mexico as the top international customer for U.S. corn and distiller’s dried grains with soluble (DDGS) and a key buyer of U.S. sorghum and barley.
enhance rules for science-based sanitary and phytosanitary (SPS) measures beyond even what was included in the now-defunct Trans-Pacific Partnership (TPP), which itself further enhanced commitments at the World Trade Organization (WTO). Most importantly, the agreement would establish a new mechanism for technical consultations to resolve issues between the parties.
include foundational language that specifically addresses innovations in agricultural breeding technology, again going farther than the TPP text.
include measures aimed at reducing the use of trade-distorting policies and ensuring fair treatment in grading and standards for agricultural products.

Negotiators managed to avoid several so-called “poison pills,” including a seasonality produce proposal that could have impeded trade and created a risk of retaliatory action. The agreement also discarded the idea of a sunset clause in favor of authoring a 16-year agreement that will be subject to a review in six years.

Some provisions are still unclear as text is not yet fully released, including the outcome of investor-state dispute resolution provisions that protect U.S. investors from mistreatment; Chapter 19 provisions for reviewing anti-dumping (AD) or countervailing duties (CVD) cases; and harmonization of renewable fuel standards.

The Trump Administration has indicated its intention to notify the U.S. Congress of a new agreement on Friday, Aug. 31, with or without Canada, which will largely determine the next steps in the political and legal processes toward a fully revised NAFTA.

Click here to see more...

Video: Why Seed Analysts are Thriving Under Seeds Canada

Last month in Edmonton, Alta., industry leaders and stakeholders gathered to discuss the evolving landscape of the seed industry at Seeds Canada’s annual conference. Among them was Sarah Foster, president of 2020 Seed Labs and the new vice-president of Seeds Canada.

Foster, who has been on the board of Seeds Canada for over a year, has witnessed firsthand the challenges and opportunities that come with the formation of the organization. Seeds Canada was established just over three years ago through the merger of multiple seed industry groups, including the Commercial Seed Analysts Association of Canada (CSAAC). Since then, the organization has been working to define its priorities and solidify its role in the industry.

“The challenge has been allowing the dust to settle after the merger,” Foster explained. “We’ve been focused on identifying what our priorities should be and ensuring that our members, especially the seed analysts, are getting what they need to continue their professional work.”

One of the recent highlights was a pre-conference event where the three major seed labs in Alberta — 20/20 Seed Labs, SGS Canada and Seed Check — opened their doors to members. The event saw a record number of seed analysts and business professionals in attendance. Foster emphasized the importance of this transparency, stating, “It’s crucial for people to see what goes on behind the scenes. We’re an open book now, and that openness helps build trust and understanding within the industry.”

The event also featured an environmental scan and a series of discussions that fostered strong communication among attendees. According to Foster, the dialogue was both encouraging and inspiring.

“A lot of people were really inspired by the fact that Seeds Canada is moving ahead with its agenda. The seed analysts, who have always worked diligently in the background, are now being recognized more prominently,” she said.

Before the merger, seed analysts were represented by CSAAC. Now, as part of Seeds Canada, they are finding their place within the larger organization. Foster believes that the integration has been successful, noting, “I think we’re thriving. You only need to look south of the border, where similar consolidations are happening.”

As Seeds Canada continues to evolve, Foster remains optimistic about the future. “I want to be totally transparent with anyone who is a seed analyst — I’ve got your back. We’re moving in a positive direction, and we’ll do everything we can to meet the needs of our members,” she said.