Hoeven: USMCA Secures Crucial Market Access for U.S. Farmers and Ranchers

Senator Outlines Benefits to Agriculture, Need to Pass Trade Agreement

WASHINGTON – On the floor of the U.S. Senate, Senator John Hoeven outlined the benefits of approving the U.S.-Mexico-Canada Agreement (USMCA) for the nation’s agriculture producers as part of a colloquy on the need to pass the trade agreement with our nation’s top two trading partners. 

“USMCA will secure important market access in Canada and Mexico for U.S. farmers and ranchers. Canada and Mexico are crucial markets for U.S. agriculture, and passing USMCA will give our producers certainty that these markets will remain open for business,” said Hoeven.

“I believe USMCA has strong support in the Senate, but the implementing legislation must originate in the House. I urge my House colleagues to agree to introduce and pass USMCA as soon as possible. Our farmers and ranchers cannot afford to wait any longer for this important agreement to take effect,” Hoeven concluded.

According to the International Trade Commission, when fully implemented, USMCA will increase U.S. agricultural and food exports to Canada and Mexico by $2.2 billion. 

Hoeven worked to ensure that the USMCA benefits North Dakota producers by:

  • Eliminating Canada’s Downgrade of U.S. Wheat: Hoeven worked to ensure that USMCA eliminates Canada’s automatic downgrade of imported U.S. wheat to feed grade to help make certain that grading standards and services are non-discriminatory.

Additionally, USMCA:

  • Expands access to the Canadian market for U.S. poultry, eggs and dairy and eliminates Canada’s Class 6 and 7 dairy program.
  • Requires 75 percent of auto content to be produced in North America in order to be exempt from tariffs, up from 62.5 percent.
  • Makes needed modernizations on intellectual property, digital trade and financial services.

Hoeven has been working to advance USMCA. In July, Hoeven organized a colloquy to make the case for approval of the agreement and has been working to secure a path forward in the United States Congress. As part of these efforts, the senator pressed for the removal of the Section 232 tariffs on steel and aluminum from Mexico and Canada. In May, the administration reached agreement with Mexico and Canada to completely lift the Section 232 tariffs on steel and aluminum without imposing quotas, and for the two countries to remove retaliatory tariffs placed on U.S. agriculture products.