USMCA: The Driving Force Behind Economic Growth in Rural America

A recent report highlights the significant economic impact of trade with Mexico and Canada on rural communities across the United States, largely attributed to the United States-Mexico-Canada Agreement (USMCA). This agreement has become a vital economic engine, promoting job creation, increasing agricultural exports, and driving overall economic growth in these areas.

During a press conference in Washington, D.C., the Agricultural Coalition for USMCA unveiled findings from a new analysis that pinpoints the agreement's advantages. Coalition members, including representatives from various agricultural organizations, voiced their strong support for renewing and fortifying the USMCA as the agreement approaches its formal review period. Krista Swanson, chief economist for the National Corn Growers Association, emphasized the USMCA's role as an essential driver of employment and investment within the U.S. agriculture sector. She noted, “While the agreement is due for a few targeted improvements, overall, it is critical to the farm economy and a key part of rural America’s success and resilience.”

The analysis reveals that U.S. agricultural and seafood exports to Canada and Mexico amounted to a staggering $149 billion in total economic output. This trade supports nearly half a million jobs and contributes approximately $36 billion in wages. Notably, for every dollar in industry exports facilitated by the USMCA, an additional $2.45 of economic activity is generated within the U.S. Furthermore, the agreement is credited with adding a substantial $64 billion to the U.S. GDP and contributing $13 billion in tax revenue across federal, state, and local levels.

A closer look at specific agricultural commodities further illustrates the USMCA's benefits. Alexis Taylor, Chief Global Policy Officer for the International Fresh Produce Association, highlighted that since the agreement's implementation, fresh U.S. fruit exports have surged by 34%, while vegetable exports have climbed by 14%. These statistics underscore the critical importance of a robust and integrated North American trade environment for agricultural producers in the U.S.

Shawna Morris, representing the dairy industry, echoed the sentiments of her peers, noting that Mexico serves as a lucrative market for U.S. dairy farmers, with Canada also offering significant growth opportunities. “USMCA is vital to our ability to trade with both partners,” she affirmed, urging for a renewal of the agreement that includes targeted reforms to enhance its effectiveness for American farmers.

The agricultural coalition, which includes a diverse array of stakeholders from farmers to processors and exporters, aims to preserve and strengthen the USMCA. As key contributors to the U.S. economy, they advocate for the continuation and improvement of this crucial agreement that ensures market access, long-term stability, and the global competitiveness of U.S. agriculture.

The formal review of the USMCA is set to commence in July, where the involved countries will decide on the agreement's renewal, potential modifications, or alternative arrangements. Coalition members are urging swift action to safeguard the gains that the agreement has achieved thus far.

In conclusion, the economic analysis presented by the Agricultural Coalition for USMCA illustrates the substantial advantages of the agreement for rural regions. As the U.S. continues to navigate challenging economic landscapes, the support for renewing and enhancing the USMCA is more important than ever—promising not just resilience but also sustained growth in the agricultural sector and beyond.

To learn more about the Agricultural Coalition for USMCA and their ongoing efforts, visit AgforUSMCA.com.