Retail Groups Are Optimistic About New USMCA Trade Deal
WASHINGTON, D.C. — Industry groups welcomed news that the Trump Administration and lawmakers reached an agreement on the United States-Mexico-Canada Agreement (USMCA).
"Retailers are very encouraged by this positive step forward to approve the USMCA, which will provide key updates to the landmark North American Free Trade Agreement and promote long-term economic growth," said National Retail Federation (NRF) President and CEO Matthew Shay.
He added USMCA takes important steps to modernize the agreement to reflect the global and digital economy.
"This agreement could not come at a better time and provides certainty for U.S. retailers that rely on the North American market, including those that operate in Canada and Mexico. It also ensures American families can continue to have access to a wide range of high-quality products at prices they can afford," Shay said. "We applaud the leadership of both President Trump and House Speaker Nancy Pelosi for their commitment to reach a new and improved deal. We look forward to having this cross the finish line and continue the strong momentum in the consumer economy."
The Retail Industry Leaders Association (RILA) also welcomed the news.
"Retailers rely on complex global supply chains to ensure customers have access to the products they desire at the best possible price. This deal is vitally important to grocers who rely heavily on trade with Mexico to supply affordable produce to American families," said Brian Dodge, RILA's chief operating officer and incoming president.
According to Dodge, building efficient and predictable supply chains requires enforceable free-trade agreements.
"The certainty this newly negotiated deal brings will allow retailers to invest, plan for the future, create jobs, and provide their customers with the widest possible selection of affordable and quality products," he added.
According to Growth Energy, the USMCA modernizes the previous trade pact, strengthens the trade relationship between these North American nations, and provides critical market access for U.S. agriculture.
"This is welcomed news for U.S agriculture and biofuel producers across North America," said Growth Energy CEO Emily Skor. "We have a rich history of trade with Mexico and Canada, and the USMCA strengthens that vital economic bond between our three nations. This was no easy feat, so we thank our champions in Congress and the administration for their tireless efforts to secure its approval and for pursuing much-needed economic opportunities for rural Americans."
The USMCA provides additional market access and trade opportunities for U.S. biofuel and its coproducts. Mexico's move toward implementing a 10-percent blend of ethanol nationwide could deliver a potential new market of 1.2 billion gallons for U.S. producers, Growth Energy explained.
In addition, Canada is the U.S.'s second largest ethanol export market, accepting 347 million gallons in 2018. The Canadian market has the potential to increase materially over the next 10 years due to changes in both federal and provincial policy, including pushes by Ontario and Quebec to move to a 15-percent ethanol blend.
Once USMCA is sent to Congress for a vote, the legislative body has 90 congressional days (45 House and 45 Senate) to consider the agreement. Congress cannot amend it once it's submitted.