NAFTA Revamped as USMCA

Canada, Mexico, and the United States said farewell to NAFTA this week and struck a new trilateral free trade agreement.

The new agreement, called the United States-Mexico-Canada Agreement (or USMCA), replaces the North American Free Trade Agreement (NAFTA) which has governed trade in North America since 1994.  It is hoped to end trade uncertainties that have plagued the respective countries' produce industries, which are already affected by rising labour costs and unpredictable weather patterns.

Says Les Mallard, Chair of the Canadian Produce Marketing Association: “CPMA has been active over the past 13 months to promote the ongoing free trading environment for our industry within North America. We are greatly appreciative of the hard work by Canadian negotiators to finalize the deal in a way that is not harmful to our sector.”

“The members of the Produce Marketing Association are pleased that negotiators have concluded discussions on an updated United States-Mexico-Canada Agreement on trade,” says the Produce Marketing Association's vice president of Global Membership & Engagement, Richard Owensaid.  “This agreement is consistent with our overarching goals of free and fair trade and we hope that the new agreement will be quickly ratified by all three countries.”

The Fresh Produce Association of the Americas has not yet released a statement, but incoming Mexican foreign minister Marcelo Ebrard says his government will promote an active industrial policy to help small companies adapt to rules in the new United States-Mexico-Canada Agreement trade deal.  The USMCA does not eliminate Mexico’s 20% tariff on U.S. apples (a response to U.S. steel and aluminum tariffs) but  Mark Powers, President of the U.S.'s Northwest Horticultural Council, comments that the agreement removes a "big roadblock" barring relevant negotiations.

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