Trade Agreement Goes into Effect July 1
Jun 22, 2020
In late April, United States Trade Representative (USTR) Robert Lighthizer notified Congress that the new US-Mexico-Canada (USMCA) trade agreement will take effect on July 1, when all three countries begin complying with their commitments under the agreement.
Iowa businesses, including many within our region, have a vested interest in international trade policies due to the dominance of the manufacturing, agriculture, and agri-business industries. With the global health pandemic leading to economic and job uncertainly, implementing a more pro-growth trade agreement for Iowa’s businesses and farmers is an essential component to our recovery efforts.
Some industries, such as automakers, have argued for a delayed implementation because of the difficulties they are facing from the coronavirus pandemic, and USTR indicated they will work to ensure a smooth implementation of the new trade rules. But for the agricultural and agri-business industries, the time is right for opening more markets.
The Economic Alliance has long supported trade policies that make it easier for Iowa small business owners, entrepreneurs, manufacturers, and farmers to sell their products abroad by eliminating trade barriers on American goods. More than 130,000 Iowa jobs are supported by trade with Canada and Mexico and Iowa businesses, farmers, and industries exports $6.6 billion alone to the two countries. Nearly one-third of U.S. agricultural exports go to these two counties.
Industries right here in Iowa City-Cedar Rapids, including machinery, processed foods, transportation and agricultural equipment and beverage products are among Iowa’s top ten exported items to Canada and Mexico. The trade agreement is good for Iowa and will helps us during our continued recovery efforts.