Farm Groups are breathing a sigh of relief, now that President Trump has decided not to withdraw the U.S. from the North American Free Trade Agreement.
Trump assured the leaders of Canada and Mexico that the U.S. will stay in NAFTA for now, after earlier threatening to withdraw from the 23-year old trade agreement.
The decision announced by the White House to renegotiate NAFTA and not ditch it followed an uproar by farm groups and others over a possible withdrawal.
American Farm Bureau trade adviser, Dave Salmonsen…
Salmonsen says he is in favor of modernizing NAFTA after a 90-day notification of Congress, but not withdrawal of the trade agreement.
NAFTA has effectively quadrupled U.S. ag exports to Canada and Mexico. U.S. corn growers last year, exported $2.5 billion dollars of corn to Mexico, the top foreign market for US corn. Canada is also a top market.
National Corn Growers Association members grew so alarmed Trump was considering ditching NAFTA, the group issued a statement to remind the President its members helped elect him, and warned withdrawal would be a disaster, costing markets that would never be recovered. NCGA’s Lesly McNitt says they are pleased with his response.
But McNitt says uncertainty surrounding trade has impacts. NCGA and AFBF say they will watch the NAFTA talks closely, in hopes of protecting gains producers desperately need amid continuing tough times in agriculture.