Dont underestimate the value of the North American Free Trade Agreement – thats the message some Nebraska farm leaders are sending as lawmakers prepare to renegotiate the trade deal with Canada and Mexico. NAFTA is more than 20 years old, and Nebraska Farm Bureau President Steve Nelson says its been very beneficial for agriculture in Nebraska and other states. He explains NAFTA represents about 38-point-one billion dollars of trade from 1993 to 2016.
For Nebraska its $2.4 billion worth of trade, and more than half of that total is with Mexico. Mexico is Nebraskas second largest trading partner at $1.3 billion, and it represents about 1,200 jobs in Nebraska, says Nelson.
Nelson also notes the deal could be more efficient with improvements that reduce regulatory costs, expedite cross-border transit and hasten the resolution of disputes between NAFTA partner countries. The first round of NAFTA talks with Canada and Mexico are scheduled to start on August 16th.
Nelson mentions its very important for these negotiations to move forward quickly. He says folks who sell products directly into Canada and Mexico are expecting some apprehension with their buyers.
While they very much prefer the U.S. products that theyre buying, theyre concerned that if something would happen in this renegotiation that would make it more difficult for them to acquire those products, they need to have other markets and so theyre looking around. All of these things create uncertainty, says Nelson.
After initially calling it the worst trade deal maybe ever signed anywhere, President Trump is now calling for the pact to be modestly revamped. The Nebraska Farm Bureau has asked the US Trade Representatives office to focus on maintaining the growth in agricultural trade in the talks.
SOURCE: Nebraska News Connection
