U.S.-Mexico-Canada Agreement (USMCA)

The U.S.-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). USMCA makes a good trade relationship even better, ensuring preferential market access for U.S. farm and food products and solidifying commitments to fair and science-based trade rules.

Key Provisions

Biotechnology

For the first time, the agreement specifically addresses agricultural biotechnology – including new technologies such as gene editing – to support innovation and reduce trade-distorting policies.

Geographical Indications

The agreement institutes a more rigorous process for establishing geographical indicators (GIs) and lays out additional factors to be considered in determining whether a term is a “common name.”

Sanitary/Phytosanitary Measures

The agreement strengthens disciplines for science-based measures that protect human, animal, and plant health while improving the flow of trade.

Dairy

America’s dairy farmers gained new market opportunities in Canada for a wide variety of products. Canada also agreed to eliminate the unfair milk pricing program that allowed its farmers to undersell U.S. producers.

Poultry and Eggs

U.S. poultry producers gained new access to Canada for chicken and eggs and expanded access for turkey.

Wheat

Canada agreed to terminate its discriminatory wheat grading system, enabling U.S. growers along the border to be more competitive.

Wine

The three countries agreed to avoid technical barriers to trade through non-discrimination and transparency regarding sale, distribution, labeling, and certification.

Fruit

The agreement updates origin rules for processed fruits to assure that preferences benefit U.S. producers.

 

Additional information about the USMCA is available from the Office of the U.S. Trade Representative

Data and Analysis

International Agricultural Trade Report

Prospects for U.S. Corn in Latin America

Latin America accounts for about 25 percent of global corn imports . The region’s corn demand for imported corn has grown steadily over the years supported by expansion in the livestock sector...
Attaché Report (GAIN)

Canada: The Impact of USMCA on Wheat Trade

The United States-Mexico-Canada Agreement (USMCA) came into effect July 1, 2020. Under the agreement, Canada agrees to allow grain grown in the United States to receive an official Canadian grade...
Infographic looking at the agricultural trade between the U.S., Mexico and Canada. The U.S. exported nearly $40 billion in agriculture to these two countries in 2018.

News and Features

The quarterly trade forecast released today projects fiscal year 2021 U.S. farm exports at $164 billion – the highest total on record. This represents an increase of $28 billion from last fiscal year and $7 billion from USDA’s previous forecast.
The Office of the U.S. Trade Representative made a request to initiate a dispute settlement panel under the United States-Mexico-Canada Agreement to challenge Canada’s allocation of dairy tariff-rate quotas.
WASHINGTON, Dec. 16, 2020 – Despite the challenges 2020 brought, the Foreign Agricultural Service (FAS) continued to lead the U.S. Department of Agriculture’s pursuit of global trade opportunities for American agriculture, successfully delivering on...

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