Source: POLITICO'S MORNING AGRICULTURE, 5/17/21

Leading trade officials from the U.S., Mexico and Canada will launch two days of talks today as the United States-Mexico-Canada Agreement nears its one-year anniversary, reports POLITICO’s Doug Palmer. But U.S.-Mexico immigration and labor tensions are casting a shadow over any celebrations.

Tit-for-tat labor cases: The trade leaders will likely have to confront complaints that U.S. and Mexico have filed against each other over labor issues, including Mexico’s grievances over how migrant workers are treated in the United States at meatpacking facilities and in the agricultural industry broadly.

The risk: Automotive and agricultural trade between the two countries could be hurt if the disputes escalate and trade sanctions are imposed.

Mexican ag barriers: U.S. farm groups and farm state lawmakers have been alarmed by several agricultural actions taken by Mexico over the past year, issues that were hashed out when U.S. Trade Representative Katherine Tai testified last week before the Senate Finance Committee. The issues include Mexico’s policies on genetically modified corn and the herbicide glyphosate and a new food-labeling law aimed at combating obesity.

Canadian dairy case: The dairy industry is also trying to prod Canada to open up its market more quickly to milk, cheese and other dairy products from the United States.

Tai told the House Ways and Means Committee last week that she took the case seriously and hoped to resolve it through discussions with Canada rather than through litigation.

In contrast to the blunt language of her predecessor, Tai also said it was too early to say Canada had violated its dairy commitments.

You win some: But the U.S. has also notched some recent trade victories, such as one concerning Mexico’s longstanding import restrictions on U.S. potatoes. As Morning Ag readers may remember, the Mexican Supreme Court recently ruled that the government can no longer restrict imports of U.S. potatoes to within 16 miles from the border, clearing the way for talks between the two countries on increased trade.