By Hola Iowa
Agricultural producers and pork industry leaders defended the renewal of the USMCA in Des Moines, saying the agreement continues to shape trade between the United States, Mexico and Canada.
Iowa farmers and pork producers are urging the United States, Mexico and Canada to keep the United States-Mexico-Canada Agreement, known as USMCA, in place ahead of a mandatory review scheduled for July 1.
Trade policy was part of the discussions during the World Pork Expo, held June 3 and 4 in Des Moines. The agreement, which replaced the North American Free Trade Agreement, known as NAFTA, in 2020, can be extended for another 16 years, move into annual reviews beginning in 2027 or expire if the three countries do not reach an agreement through the review process.
Mexico and Canada account for a key share of Iowa exports
Bob Hemesath, who grows corn and raises hogs in northeast Iowa, moderated a roundtable with state agricultural leaders Wednesday during the World Pork Expo. Hemesath participated as board chairman of Farmers for Free Trade, a nonprofit coalition that supports agricultural trade.
Hemesath said the USMCA remains a cornerstone of North American agriculture at a time of growing global competition and greater need for market access.
“For Iowa, that impact is tangible. Canada and Mexico account for a vast majority of our state’s key export markets,” Hemesath said.
About 40% of Iowa’s goods are exported to Mexico and Canada, according to Brookings Institute data cited during the discussion. The total value of those exports in 2023 was $8.9 billion, with corn, soybeans, ethanol and tractors among the leading products.
Randy Miller, a farmer in south-central Iowa and board member of the American Soybean Association and the U.S. Soybean Export Council, said the impact of that trade reaches small towns across the state.
Producers want the agreement renewed without changes
Miller said the USMCA allows for “free, reciprocal” trade. Products that comply with the agreement have largely been exempt from President Donald Trump’s tariffs.
Miller and Christopher Pudenz, an economist with the Iowa Farm Bureau Federation, said they support renewing the USMCA for another 16 years without changes.
Pudenz said Brazil is currently one of the United States’ top international agricultural competitors. He also said Brazil does not have a free trade agreement with Mexico like the USMCA.
“Maintaining this USMCA relationship is really, really important for keeping Brazil a step behind us in a market like Mexico,” Pudenz said.
Julie Kenney, CEO of the Agribusiness Association of Iowa, also supported keeping the agreement in place. The organization represents more than 1,000 manufacturers, wholesalers and agricultural retailers in Iowa.
Kenney said an intact USMCA benefits farmers and agribusinesses through both exports and imports.
Canadian potash is also part of the discussion
Kenney said Iowa gets more than 85% of its potash from Canada. Potash is primarily used to make fertilizer.
“Canada is sitting on the largest potash reserves in the world, and so, having a neighbor that has that vast resource is critically important to Iowa farmers, to our wholesalers and manufacturers, and ag retailers, as well,” Kenney said.
After Canada, Belarus and Russia have the second and third largest potash reserves in the world.
Kenney said maintaining a stable trade relationship with neighboring countries helps support Iowa’s agricultural activity. She also said there are areas where the agreement could be improved, including grain inspections.
According to Kenney, the Federal Grain Inspection Service of the U.S. Department of Agriculture inspects grain before it crosses the border to verify that it meets Mexico’s import standards. Duplicate inspections by Mexico can create logistical challenges in the supply chain, she said.
Pork producers want to keep tariff-free and quota-free access
During a separate event with reporters, Maria Zieba, vice president of government affairs for the National Pork Producers Council, said the organization also wants the USMCA renewed.
“What we want is essentially to maintain what we have,” Zieba said.
Zieba said U.S. pork goes to Canada and Mexico without tariffs or quotas under the USMCA. She added that those benefits for the pork industry began with NAFTA three decades ago.
“We were a net importer of pork in 1994. Then NAFTA went into effect,” Zieba said. “We became a net exporter.”
Mexico was the top export market for U.S. pork last year, buying $2.85 billion in products. Canada ranked fourth, importing pork and pork products valued at $758.65 million.
The USMCA review is scheduled for July 1
The USMCA includes rules on food safety, plant health and animal health. For pork producers, keeping the agreement in place means having stable rules for long-term investment planning.
“When producers look at making investments for the future, they are pouring concrete for their barns and they’re thinking of 40 years in advance,” Zieba said. “If the rules change on you, then all that investment that you’ve made in the future does get compromised.”
The mandatory USMCA review is scheduled for July 1. The three countries must decide whether to extend the agreement for another 16 years, terminate it or begin an annual review process in 2027.
Trade leaders from Canada and Mexico said this week that they support renewing the USMCA through 2042. If the United States does not agree to extend it, the agreement would expire in July 2036.
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