CUSMA signed and now the ratification race begins

Canada may be the last to officially complete the deal.Ottawa—With the negotiations over the new North American trade agreement concluded, agrifood and other business groups are waiting for a final text to make sure there are no surprises.Dan Darling, President of the Canadian Agri-Food Trade Alliance (CAFTA), said the Dec. 10 signing of the Canada-United-States-Mexico deal in Mexico City is welcome. “We look forward to receiving confirmation that the changes don't negatively impact our members.“Since the initial negotiations concluded well over a year ago, the prolonged discussions required to secure support in the U.S. Congress have undermined business certainty,” he said. “With the negotiations now concluded, all three parties must complete their ratification processes without further delay. It's time to restore predictability and certainty to North American trade.”Keith Currie, First Vice-President of the Canadian Federation of Agriculture, said farmers faced many challenges during the last two years and the lack of a renewed NAFTA only added to these stresses.As the agreement provides more stability with Canada's largest trading partners, CFA hopes it “can finally be ratified and provide greater opportunities for our sectors that depend on the U.S. and Mexican markets for their well-being.”He called for speedy ratification and action on the government's promise to fully compensate supply-managed producers and processors for lost market share. As well, the government shouldn't concede any more market access in future trade agreements and not agree in future agreements to accept a world-wide cap on exports of certain dairy products as it did in CUSMA.He also reminded the politicians that Canadian agriculture “contributes more than $143 billion to the national GDP. “Trade agreements that impact our industry and specific agricultural sectors need to reflect how our government will position Canadian agriculture for future growth.”Jeff Nielsen, Chairman of Grain Growers of Canada, welcomed the signing of the deal. “Grain farmers require the certainty provided by a strong trade deal and we urge the Canadian government to move swiftly to fully ratify the deal.”Prime Minister Justin Trudeau said the government was looking at how to proceed with ratification. “I have assured both the President of the United States and the President of Mexico personally that we will proceed with ratification as quickly as we can.”Parliament is scheduled to begin its Christmas break Dec. 13 and return Jan. 27.Deputy Prime Minister Chrystia Freeland signed the deal for Canada in Mexico City along with U.S. Trade Representative Robert Lighthizer and Mexican trade negotiator Jesus Seade.While it was originally signed in November 2018, its ratification was stalled by Democrats in the House of Representatives. The agreement now is expected to receive Congressional approval, possibly before Christmas.The general consensus is that while Canada made concessions on dairy and poultry access, it kept the Chapter 19 dispute settlement process, which enables the country to avoid U.S. courts on most trade-related issues. In addition, Canadian workers will also benefit from the more stringent labour requirements. Freeland said the latest version of CUSMA contains amendments that improve on the previous version in terms of state-to-state dispute settlement, labour protection, environmental protection, intellectual property and automotive rules of origin.“These improved outcomes make the deal more progressive, will further strengthen the trilateral economic relationship, and support the efforts of each of the three countries toward ratification and implementation of the new NAFTA,” she said.U.S. Secretary of Agriculture Sonny Perdue said, “USMCA is a big win for American workers and the economy, especially for our farmers and ranchers. The agreement improves virtually every component of the old NAFTA, and the agriculture industry stands to gain significantly.”American Farm Bureau Federation President Zippy Duvall said, “We urge members of Congress to swiftly approve the United States-Mexico-Canada Agreement. Agriculture is at a critical crossroads with the downturn in commodity prices, losses from natural disasters and the trade war. This is an opportunity for Congress not only to help U.S. farmers and ranchers turn the corner on trade, but also show that Washington can still get things done on a bipartisan basis.“Ratification of the USMCA would build on the momentum of the U.S.-Japan agreement, which gave a major boost to American agricultural products in our fourth-largest market, and send a signal that the U.S. is back in business in the international marketplace,” 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.