USMCA Enters Force Today
July 1, 2020 Ohio Soybean Association
The United States-Mexico-Canada Agreement (USMCA) enters into force today, July 1. The free trade agreement between the three member countries is intended to update and largely replace the North American Free Trade Agreement, or NAFTA, which took effect in 1994.
The Agreement seeks to improve and modernize approaches to rules of origin, agricultural market access, intellectual property, digital trade, financial services, labor and numerous other sectors. The Agreement also addresses trade rules related to agricultural biotechnology and gene editing.
USMCA could have a huge impact on U.S. soybean trade, with Mexico being the #2 market for whole beans, meal and oil, and Canada being the #4 buyer of meal and #7 buyer of oil. Under NAFTA, U.S. soybean sales to Mexico quadrupled and to Canada doubled.
“We are excited to see USMCA go into effect after years of hard work by both state and national groups, including our national partner the American Soybean Association, to get it passed,” said Ohio Soybean Association President Ryan Rhoades, a soybean farmer from Marion County. “With improvements for the U.S. poultry and dairy industries and better clarification for biotechnology, we are optimistic about the impact this agreement will have on the U.S. soybean industry.”