A Look at Trump's new NAFTA from a Livestock Perspective with Extension Economist Glynn TonsorWed, 03 Oct 2018 10:37:07 CDT
From a livestock industry perspective, the new NAFTA deal that has been trumpeted recently by the Trump Administration, or the US, Mexico, Canada Free Trade Agreement (USMCA) as it will now be known, gives US dairy producers more access into the Canadian market. For the rest of the livestock industry- not much has changed from the old NAFTA agreement, according to Extension Livestock Market Economist Glynn Tonsor who says that’s a good thing.
“Importantly, I have not seen anything that is specific to bovine, beef, hogs or pork that just leaves me speculating that they were massively changed from the past NAFTA agreement,” Tonsor said. “If that is the case, that would be a good thing in my opinion because Canada, the US and Mexico have very intertwined supply chains.”
Tonsor says live and feeder cattle alike cross both the Canadian and Mexico border into the US frequently, with several core economic reasons behind that interconnection of supply chains that exists. This fact is the foundation from which the livestock industry’s major concerns about renegotiating the trade pact first stemmed. Tonsor says the prospect that seems to have been laid on the table, one that for all intents and purposes leaves basically all of the agricultural sector untouched, is a very big deal. Setting live animal trade aside, meat export transactions under this treaty alone will account anywhere from one quarter up to half of total US meat exports.
“At face value it appears, specifically for beef and swine, the market will not be drastically impacted compared to what the old NAFTA was,” he surmised. “So, there’s been lots of trade uncertainty. This is not done by any means, but it is a step in my eyes in the right direction of resolving some of that trade uncertainty.”
Listen to Tonsor’s full analysis of the new USMCA trade agreement, with Radio Oklahoma Ag Network Farm Director Ron Hays, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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