The new trade deal between the United States, Mexico and Canada went into effect Wednesday. The new agreement doesn’t drastically impact Indiana agriculture, but it is still welcome news to farmers.
The new United States Mexico Canada Agreement (USMCA) is expected to help Hoosier farmers by expanding exports for poultry producers and giving American dairy farmers more access to the Canadian market.
Indiana Farm Bureau president Randy Kron said the USMCA gives farmers some certainty during a time when COVID-19 has hurt supply chains.
“You know, we’ve got a good crop growing right now and a lot of livestock grown right here in Indiana, so having access to markets is critical to the survival of Hoosier farmers,” Kron said.
The USMCA also addresses manufactured products and labor issues that would impact some automakers and suppliers that have facilities in Indiana. The agreement requires car makers with factories in Mexico to pay workers there a higher wage in an effort to reduce offshoring of jobs.
Indiana exported nearly $19 billion worth of goods to Canada and Mexico in 2018, according to the Office of the United States Trade Representative.