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Agriculture in the United States, Mexico, Canada Agreement: Agreeing to keep things pretty much the same

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  • William A. Kerr

Abstract

North American Free Trade Agreement (NAFTA) was referred to by U.S. President Trump as one of the worst trade deals ever made. Given this billing, one might have expected the result of its renegotiation to be a major change to the trading relationship between the United States and Canada. The new United States, Mexico, Canada Agreement (USMCA), however, retains a great deal of its predecessor. This is particularly true for agricultural trade. Canadian market access into the United States remains virtually unchanged. No major domestic regulatory changes were agreed to by Canada. While there were concessions made on market access for U.S. products into Canada's heavily protected sectors where the supply management policy applies, they do not appear to threaten the system. While the value of the compensation has not yet been announced, compensation for losses that will be suffered by farmers producing under supply management is agreed in principle. The USMCA is an agreement to keep things pretty much the same. Le président américain Trump a qualifié l'ALENA de l'un des pires accords commerciaux jamais conclus. Compte tenu de ce qualificatif, on aurait pu s'attendre à ce que le résultat de sa renégociation soit un changement majeur dans la relation commerciale entre les États‐Unis et le Canada. Le nouvel ACEUM ressemble toutefois grandement à son prédécesseur. Ceci est particulièrement vrai pour le commerce agricole. L'accès du marché canadien aux États‐Unis demeure pratiquement inchangé. Le Canada n'a pas accepté de modifications majeures à la réglementation nationale. Bien que des concessions aient été faites sur l'accès aux marchés pour les produits américains dans les secteurs fortement protégés du Canada où la politique de gestion de l'offre s'applique, elles ne semblent pas menacer le système. Bien que la valeur de l'indemnisation n'ait pas encore été annoncée, une indemnisation pour les pertes que subiront les agriculteurs sous gestion de l'offre est convenue en principe. L'ACEUM est un accord pour garder les choses à peu près pareilles.

Suggested Citation

  • William A. Kerr, 2020. "Agriculture in the United States, Mexico, Canada Agreement: Agreeing to keep things pretty much the same," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(1), pages 127-134, March.
  • Handle: RePEc:bla:canjag:v:68:y:2020:i:1:p:127-134
    DOI: 10.1111/cjag.12212
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