MPC, Ag Leaders Talk Trade with Congressman Jim Costa in Fresno

There is a lot of talk about trade these days, particularly with Canada and Mexico who are our closest trading partners. Since 1994, our three countries have enjoyed a special trading relationship now called the

USMCA. That agreement is under a scheduled 5 year review right now and Congressman Jim Costa this week held a meeting at the Fresno Farm Bureau office to hear from various California agriculture representatives, including MPC member Steve Maddox and me.

I think the enormous impact on the U.S. dairy industry, including the California dairy industry, of the USMCA trade agreement is often unappreciated. Mexico has become a major destination for American, and particularly, California dairy products. Yes, we also export to many other countries, but it was the robustness of the Mexico market that enabled our industry to develop the infrastructure and marketing chain expertise at scale that made the growth of the U.S. dairy industry over the past 30 years possible.

As for Canada, we may justifiably complain about what we would characterize as cheating. But the strict quota system the Canadian government imposes on its dairy farmers, and expends considerable political capital defending, has the practical effect of restraining what, if unleashed, could become a formidable competitor to the United States in supplying the world with dairy products.

The bottom line: USMCA is good for the U.S. dairy industry, we need to renew it and maintain a growing trade relationship with Mexico, and we need to get Canada to play by the rules.