Dear Ambassador Greer, Minister LeBlanc, and Secretary Ebrard,
The undersigned organizations representing the American, Canadian, and Mexican food and agricultural value chains submit this letter in support of a renewal and strengthening of the Canada-United States-Mexico Agreement (CUSMA) / U.S.-Mexico-Canada Agreement (USMCA) / Tratado entre México, Estados Unidos y Canadá (T-MEC). Our organizations represent North American farmers, producers, distillers, ranchers, seafood harvesters, agribusinesses, grain handlers and exporters, animal health, agricultural co-operatives, and retailers who have benefited tremendously from the economic fortitude that CUSMA/USMCA/T-MEC provides. CUSMA/USMCA/T-MEC strengthens the resilience of our integrated agricultural markets and over the past twenty years, has made North America the most food secure region in the world. All three nations share the responsibility of protecting and strengthening this competitive advantage, which is essential not only to economic prosperity, but also to national security and regional stability.
In order to remain globally competitive, the efficiencies and seamless integration between the United States, Canada, and Mexico are crucial. CUSMA/USMCA/T-MEC represents one of the largest trading blocs in the world, with over 500 million people, a $30 trillion-dollar GDP, and a trade volume of $1.7 trillion. The strength of this trilateral partnership wielded in CUSMA/USMCA/T-MEC allows North America to remain globally competitive, particularly with respect to maintaining high standards in areas such as sanitary and phytosanitary (SPS) or agricultural biotechnology. Without this trade agreement, North America is more vulnerable to countries that employ trade restrictive policies that negatively impact the movement of food from areas of surplus to deficit. CUSMA/USMCA/T-MEC is key to maintaining a competitive global advantage that reduces reliance on distant supply chains and encourages investment across the region. Preserving the full trilateral framework of the agreement safeguards these advantages, as the integrated nature of North American agriculture depends on predictable and cooperative trading relationships among all three countries.
CUSMA/USMCA/T-MEC’s efficiencies reduce costs, and the provisions create stability and predictability – all vital elements that farmers and businesses need to plan for the future. As CUSMA/USMCA/T-MEC unfolds, it is important to ensure that it does not create uncertainty and instability to markets that could have negative ripple effects across the entire North American economy. Trade cooperation between the United States, Mexico, and Canada affords massive economic benefits, highlighting the need to uphold and strengthen CUSMA/USMCA/TMEC. Trade integration between all three countries has allowed agricultural exports to soar, tripling the value of agrifood trade between the three countries between 2005 and 2023, totaling $285 billion. This growth was facilitated by removal of most tariff and quota barriers within North America, as well as reduced barriers through regulatory cooperation. Preserving these commitments limits disruptions in supply, maintains affordability for consumers, and promotes competition.
In addition to the economic benefits provided by CUSMA/USMCA/T-MEC, the elimination of regulatory barriers has benefited parties in all three countries. Specifically, the agreement’s SPS provisions increased regulatory transparency and ensured science-based treatment of agricultural commodities and products to the benefit of animal and plant health, which have worked incredibly well for exporters. Additionally, the technical barriers to trade (TBT) provisions are instrumental in removing obstacles inhibiting trade and strengthening regulatory cooperation. All of these measures contribute to reduced costs for consumers and facilitating strong demand for farming communities across North America.
CUSMA/USMCA/T-MEC creates an environment that can mitigate trade challenges instead of spurring escalation. This is especially important as the entire food and agriculture supply chain is grappling with high input costs, low commodity prices, natural disasters, and global unrest. Price increases are difficult in any time period, but especially now. CUSMA/USMCA/T-MEC’s provisions provide mechanisms to handle unfair trade actions and avoid inflicting harm on our rural communities.
Our organizations are deeply reliant on trade, and our closest neighbors are the strongest trading partners for North American agriculture and its continued success. We stand ready to provide the expertise needed to uphold and extend CUSMA/USMCA/T-MEC to the benefit of the entire North American food and agriculture sector.