United States-Mexico-Canada Trade Agreement

Floor Speech

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Mr. THUNE. Mr. President, later today, the President will sign phase one of the trade agreement we are negotiating with China. Of particular importance to my State, phase one includes a pledge from China to substantially increase its imports of American agriculture products.

That is good news for South Dakota. It is good news for farmers and ranchers who have been struggling in a tough ag economy. Low commodity and livestock prices, natural disasters, and protracted trade disputes have made the last few years challenging ones for farmers and ranchers around the country.

I spend a lot of time in South Dakota, talking to our farmers and ranchers. One thing they always emphasize is the need for trade deals that will open up new markets or expand current markets for their products.

The China deal should significantly increase demand for American agricultural products and boost the farm economy. But while this agreement is excellent news, we do need to make sure that China will actually live up to its commitments. China doesn't have the best record in this regard, so it is important the United States make clear that any agreements must be honored.

As we wait for the China deal to take effect, one piece of definite good news on the trade front is the arrival in the Senate of the United States-Mexico-Canada Agreement. After months of delay by House Democrats, USMCA is finally--finally--moving through Congress. Here in the Senate, it is advancing rapidly through the required committees, and I expect it will be received for final Senate consideration in the next few days.

Last week, I voted in support of this agreement in the Senate Finance Committee, and just this morning--a few minutes ago, in fact--I voted for this agreement in a meeting of the Senate Committee on Commerce. The United States-Mexico-Canada Agreement has been a big priority of mine over the past year, in particular because of the ways the agreement would benefit farmers and ranchers.

Canada and Mexico are the No. 1 and No. 2 markets for American agriculture products, and this agreement will preserve and expand farmers' access to these two critical export markets and give farmers certainty about what these markets are going to look like going forward.

I am particularly pleased about the ways that USMCA will benefit dairy farmers. If you drive the I-29 corridor north of Brookings, SD, you can see firsthand the major dairy expansion South Dakota has experienced over the past several years.

The U.S.-Mexico-Canada Agreement will preserve U.S. dairy farmers' role as a key dairy supplier to Mexico, and it will substantially expand market access to Canada. The U.S. International Trade Commission estimates that the agreement will boost U.S. dairy exports by more than $277 million. The agreement will also expand market access for U.S. poultry and egg producers. It will make it easier for American producers to export wheat to Canada and much more.

Of course, the benefits of this agreement are not limited to farmers and ranchers. The United States-Mexico-Canada Agreement will benefit virtually every sector of the economy, from manufacturing to digital services to the automotive industry. It will create hundreds of thousands of new jobs, boost our economic output, and increase wages for workers.

The agreement also breaks new ground by including a chapter specifically focused on small and medium-sized businesses--the first time a U.S. trade agreement has ever included a dedicated chapter on this topic.

Roughly, 120,000 small and medium-sized businesses around our country export goods and services to Mexico and Canada, including a number of businesses in my home State of South Dakota. The United States-Mexico- Canada Agreement will make it easier for these businesses to successfully export their products. South Dakota businesses and consumers will also benefit from the fact that the agreement maintains the current U.S. de minimis threshold, which is something I fought hard to protect.

It is too bad farmers and ranchers had to wait so long for the USMCA trade agreement. This agreement was concluded well over a year ago, and it could have been taken up much sooner. But House Democrats have, unfortunately, been more focused on playing political games than on working with Republicans to do the American people's business.

I am very glad we are taking up this agreement now, though, and I look forward to voting for final passage of USMCA in the very near future. We should get this agreement to the President's desk without delay.

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