CAFTA and other business groups urge passage of new NAFTA

CAFTA says the CUSMA will benefit agriculture exporters.Ottawa-The Canadian Agri-Food Trade Alliance and four key other business groups are urging Parliament to pass the new North American (CUSMA) trade deal even as the U.S. Congress dithers on approving it.CAFTA along with the Canadian Chamber of Commerce, the Business Council of Canada, Canadian Manufacturers & Exporters and the Canadian Federation of Independent Business sent a joint letter to Prime Minister Justin Trudeau offering their full support during the ratification process.The members of these organizations are “responsible for the vast majority of  Canada's exports to, and commercial ties with, the United States and Mexico,” the letter said. “We stand ready to work with you as you implement this important agreement to lift the cloud of uncertainty that has hung over the North American trade and investment relationship since 2017.“When implemented, CUSMA will generate significant new benefits for the Canadian economy, spurring new investments while encouraging the creation of new high-value jobs,” the letter said.It also urged the government to collaborate with the U.S. and Mexico “in pursuit of a more productive and mutually beneficial trilateral relationship. For example, we would encourage all three governments to work together to enhance North American competitiveness and good regulatory practices as outlined in the agreement by establishing committees in each area to promote economic growth and strengthen regulatory cooperation.”The ratification bill will have to be approved by the Commons and Senate by June 21 when Parliament prorogues for the October election. The government can always wait to proclaim in effect until the Congress makes a final decision.CAFTA Brian Innes said export-dependent farm commodity groups “are pleased the Canadian government is taking steps to bring the CUSMA into force. It's a remarkable achievement in today's environment that the agreement contains no new tariff or trade-restricting measures. All agricultural products without tariffs under the North American Free Trade Agreement (NAFTA) will remain without tariffs under the new CUSMA.“Modernizing NAFTA maintains the continental supply chains that make North America globally competitive,” he said. “We are also happy the agreement makes meaningful progress on regulatory alignment. Establishing the Working Group for Cooperation on Agricultural Biotechnology and a new Sanitary and Phytosanitary Committee will help make regulations more transparent and based on science.“Taken together, CUSMA is a meaningful upgrade from NAFTA that keeps trade tariff free, establishes processes to help remove remaining technical barriers and maintains vital provisions to deal with disputes,” Innes said.Trudeau told reporters his government understands the American ratification process is more complicated. “We want to be helpful to the American process as it undergoes its steps, and that's why we're working with the Americans on our own timelines as well.”“But passing it in Canada doesn't mean anything if it's not also ratified in the United States and in Mexico, and that's why we're making sure that we're aligned and supportive of the processes that are slightly more difficult on their ends,” he said.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.