Concerns Grow As NAFTA Pull Out Becomes More Likely

As concerns continue over the possibility of the U.S. pulling out of NAFTA, senators, representatives, governors, key USDA officials, and farm and livestock groups have all weighed in more vocally in recent days.

“Agriculture of course has done very well with NAFTA, its boosted our exports over four times compared to what it was ahead of time, and in Korea we’ve maintained and our exports to Korea with KORUS and improving in certian areas, so we see a lot of future with that,” said American Farm Bureau trade adviser Dave Salmonsen.

The administration plans to enter KORUS renegotiation talks, as well, but most US attention on trade is on NAFTA and the fear that President Trump’s ‘America First’ push will compel Mexico to do its ag business elsewhere.  Salmonsen said pulling out of TPP should serve as a lesson for the White House.

“The fact that TPP is moving ahead with the 11 countries without the U.S., certainly we think that does not put us in a good position in the Pacific countries, to expand our trade and has opened the door for other countries such as the European Union to engage in negotiations with some of the TPP countries such as Japan.”

The TPP pullout has also opened the door for Australia to sell more beef in Japan without facing low-tariff competition from U.S. beef.  NAFTA move next to Canada in late January, but then face possible interruption from Mexico’s national elections next July.

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