State ag industry breathes a sigh of relief over passage of US-Mexico-Canada trade agreement
On a vote of 385-41, the US House on Thursday gave its thumbs-up to the US-Mexico-Canada trade agreement, known as the USMCA.
In Colorado’s seven-member delegation, four Democrats and three Republicans, all voted in favor. Almost all of the “no” votes in the House were from Democrats.
The measure now moves on to the Senate, where it is expected to win quick approval.
The trade agreement has been more than a year in the making. The leaders of the three nations signed the agreement, an update to the North American Free Trade Agreement, on Nov. 30, 2018. But the deal required ratification by lawmakers in all three countries.
The Mexican Senate ratified the agreement last June. Canada has yet to act; their lawmakers have already adjourned for the year and won’t be back until January 27. According to Reuters, Canadian Prime Minister Justin Trudeau may be struggling to round up enough votes for ratification.
The last sticking point on the deal for House Democrats was over monitoring Mexican labor practices and compliance.
According to the US Trade Representative, the benefits to the United States include a more level playing field for workers, “including improved rules of origin for automobiles, trucks” and other products.
Reaction to the deal is more of a sigh of relief than anything.
Zach Riley, director of national affairs for Colorado Farm Bureau, said Thursday his organization is “extremely happy. Ratifying the USMCA has been our biggest priority for the past two years. It’s a huge opportunity for Colorado, whose biggest trading partners are Canada and Mexico.”
Riley, said the agreement will lift non-monetary bars to entry for American dairy products. American beef exports to Canada also will increase under the deal. That matters to Colorado ag because the state’s number one agricultural export to both Canada and Mexico is beef and cattle products.
Colorado exports in all sectors to Canada and Mexico topped $2.7 billion in 2018 and support 220,000 jobs statewide.
U.S. Rep. Doug Lamborn, R-Colorado Springs, referred to the agreement as “Trump’s Art of the Deal.”
In a statement, Lamborn said that “after months of stalling, Speaker Pelosi has finally brought the USMCA to the House Floor for a vote. I am glad that President Trump has negotiated a great new trade deal between the United States and our two biggest trading partners, Canada, and Mexico. Trade with Mexico and Canada is vital to our economy and my home state of Colorado.
“USMCA will drive higher wages, add thousands of new jobs, and bring over $68 billion in new economic growth for our economy. While not a perfect agreement, this crucial trade deal is vital to strengthening our relationship with our North American trade partners, while still holding Canada and Mexico accountable.”
The USMCA “is crucial for the future of American prosperity, as well as our farmers, manufacturers, innovators, and those who continue to stimulate future economic growth,” said U.S. Rep. Ken Buck, R-Windsor.
The Colorado Chamber of Commerce was one among hundreds of signatories to a letter from business and agricultural groups all across the country to Congress on Dec. 17, urging quick passage of the USMCA. Twelve million jobs are at stake, the letter stated.
Chamber President Chuck Berry said Thursday that “we applaud Congress for coming together in bipartisan support for USMCA – this agreement will boost our state economy, strengthen Colorado’s relationships with our most important trade partners, and support jobs and businesses across a broad spectrum of industries.”
U.S. Rep. Ed Perlmutter, D-Arvada, also added his support for the vote Thursday. “I applaud the work of the House Democratic USMCA Working Group and their negotiations with the Trump administration resulting in several key improvements to the original agreement,” Perlmutter said in a statement. “The USMCA now includes strengthened labor rule enforcement and commitments, creates new mechanisms for monitoring environmental standards compliance, and improves the state-to-state resolution process. In addition, the USMCA modernizes NAFTA to reflect the 21st century economy, specifically on digital trade, intellectual property, and market access.
“Trade is a key component of the Colorado economy, with North American trade supporting more than 220,000 Colorado jobs. These improved trade rules under USMCA will help more Colorado manufacturers, farmers, and ranchers export their products to Canada and Mexico tariff-free, improve worker protections, increase environmental protections across the continent, and benefit Colorado’s growing tech and startup community. I am supporting this updated trade agreement because it’s stronger and helps support U.S. businesses, consumers and workers.”
And U.S. Rep. Scott Tipton, R-Cortez, tweeted that “more work [is] to be done on the potato front, but this is great news for farmers!”
Mexico limits imports of American potatoes, including those from the San Luis Valley, to within 25 kilometers from the U.S.-Mexico border. The USMCA does allow for more discussion of that issue but no firm agreements to lift that limit are included.
Colorado Politics Must-Reads:

