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Farmers keep close eye on NAFTA's sixth round
Story Date: 1/30/2018
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Source: POLITICO'S MORNING AGRICULTURE, 1/29/18
U.S. farmers are eagerly watching the machinations of the ongoing round of NAFTA talks in Montreal, Pro Trade's Adam Behsudi reports. Many who farm in various agriculture sectors have for months endured a roller-coaster of emotions as President Donald Trump has repeatedly threatened to pull out of NAFTA if a satisfactory deal isn't reached.
Waiting for Lighthizer: The conclusion of the latest round of talks largely depends on how U.S. Trade Representative Robert Lighthizer responds to several new ideas presented by Canada and Mexico, said a Mexican private sector official, according to Pro Trade's Doug Palmer. Lighthizer's tone during a joint press conference, scheduled for 11:20 a.m. Eastern, may help determine whether talks wrap up by March 31 or drag on longer.
Why farmers worry: Farmers fear that the uncertainty surrounding the talks has already prompted Mexico - one of the largest customers of U.S. agriculture goods in many respects - to seek other suppliers of feed grain, wheat and other commodities.
"The statement by ministers on Monday is going to be important and just seeing how they characterize the progress, and that's something to watch carefully," said Darci Vetter, a former senior trade and agriculture official in the Obama administration now advising a group called Farmers for Free Trade that is promoting the importance of NAFTA for agriculture.
Signs of hope: The U.S. has given some signals that it is open to alternative ideas presented by Canada and Mexico, Adam writes. Although he has been fickle on his support for NAFTA, Trump demonstrated at a speech to farmers this month that he still had their backing, so he may not abandon a crucial constituency that overwhelmingly supported him in the 2016 election.
U.S. aggies in Montreal: Robert Guenther, senior vice president of public policy for United Fresh Produce Association, told MA that the large ag presence at the sixth round of negotiations showed the widespread ag support for the continuation of NAFTA. U.S. ag industry leaders in Montreal - including Guenther - have said that the negotiations are visibly moving in the right direction.
"It is critical that our negotiators be able to discuss key issues with NAFTA with such a diverse group representing many different sectors of United States agriculture," Guenther said.
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