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U of IL: USMCA is NAFTA 1.01

A report by the University of Illinois Department of Agricultural and Consumer Economics says the new USMCA -United States-Mexico-Canada-Agreement – is not very different from the North American Free Trade Agreement that it’s meant to replace, “I don’t even call it NAFTA 2.0. It’s really NAFTA 1.01. It’s really not that different from the old agreement.”

Kathy Baylis, one of the co-authors of the report, tells Brownfield the only real difference for agriculture is in the dairy portion which opens up 10% of Canada’s dairy market and gets rid of its Class 7 pricing system, “It’s not a huge market. That might make a difference for a few folks but, it’s just – it’s not – we’re not talking huge dollars here!”

And, she says, the dairy improvements in the USMCA for the U.S. mimic those in a trade agreement that President Trump pulled out of, “It’s basically the same thing that Canada had agreed to under the Trans Pacific Partnership.” Other sticking points, she says, are aluminum and steel tariffs on Canada and Mexico which Mexico has been very vocal about.

Baylis says getting the USMCA ratified has been made more difficult by the midterm elections which led to a majority of Democrats in the House, come January. Reports say Democrats like the labor changes but are concerned about a lack of enforcement in the deal. Ratification is not expected with the current Lame Duck session.
AUDIO: Interview with Kathy Baylis ~