This morning, President Donald Trump signed into law the US-Mexico-Canada trade agreement, finalizing Washington's role in pushing the agreement to the finish line. The signing ceremony marks a tremendous step forward in the years-long re-negotiation process, first proposed by the Trump Administration in 2017.
At the White House signing ceremony, President Trump highlighted that the deal will boost America's GDP by over 1% and will bolster North American countries as they negotiate future trade deals, including with China and the European Union.
IBA is pleased that Congress and the president were able to ratify the updated trade agreement which will benefit American farmers and food manufacturers by easing trade restrictions and addressing key issues such as labor protections to intellectual property rules.
Canada's legislature must still vote to ratify the agreement, and all three countries must take steps to implement their necessary obligations before the deal can take effect. The most challenging will be Mexico's compliance with its labor commitments, one of House Democrats major negotiation priorities during congressional ratification.
Regardless of the tasks at hand, IBA and other pro-business groups across the country join together in praising the deal. Throughout the negotiation and ratification process, more than a thousand trade associations, state and local chambers of commerce, agricultural economists and independent businesses unified in supporting a modern, market-based agreement as an alternative to prohibitive tariffs. Specifically, the baking industry will benefit from USMCA's minor but notable increase in U.S. access to Canadian sugar and sugar-containing ingredients.
IBA will continue to monitor the final steps of the USCMA ratification and implementation process.