Nebraska lawmakers weigh in on Trump refusal to renew trade deal with Mexico, Canada

The U.S.-Mexico-Canada Agreement, or USMCA, was negotiated by President Donald Trump's first administration to replace 1994 North American Free Trade Agreement (NAFTA), and was described by Trump in 2020 as the "fairest, most balanced and beneficial trade agreement we have ever signed." 

Now, after a six-year review of the trade deal, the Trump administration's decision Wednesday not to extend the agreement initiated a decade-long countdown to the July 1, 2036, expiration date. The USMCA will remain in place for 10 years with annual review, unless the three countries agree to renew it with changes. 

In a statement Thursday, Sen. Pete Ricketts said Mexico and Canada are Nebraska's first- and second-largest export markets, respectively. 

"Over the past three decades, Nebraska’s farmers, ranchers and businesses built lasting relationships with both countries. These trade relationships should be maintained," Ricketts said. 

While Ricketts stressed the importance of protecting the state's agricultural sector, he said the current USMCA does have issues that must be resolved.

"The Trump administration is right to work to negotiate the best deal possible for the American people. I will continue to work with the administration to reach final deals with both Canada and Mexico that provide market stability and expanded market access for Nebraska farmers, ranchers and businesses," Ricketts said.

1st Congressional District Rep. Mike Flood echoed this, saying in a statement Thursday that the president has a "strong record of delivering fair trade deals." 

"I am confident the USMCA talks will build on that success. The three-country framework has been essential for Nebraska farmers and businesses. I am encouraged by the progress of the talks and believe an even stronger USMCA will benefit American workers, farmers and our economy," Flood said.

In a statement Wednesday, Mark McHargue, president of the Nebraska Farm Bureau, called on the U.S., Canada and Mexico to make the improvements that are necessary to get the trade agreement renewed.

"USMCA stands as one of the most successful free trade agreements in the world. At a time when our state and nation's food producers face severe economic strain, now is simply not the time to harm our trading relationship with these two crucial markets," McHargue said. 

McHargue said both nations are top markets for Nebraska's corn, beef and soybean producers, accounting for nearly half of the state's total exports. 

"Nebraska's trading relationship between Mexico and Canada represents a combined $3.5 billion in exports, making them our top two trading partners," McHargue said. "While no trade agreement is ever perfect, USMCA is vital to the economic future of our state and our state's farm and ranch families."

U.S. Trade Representative Jamieson Greer said in a statement Wednesday the U.S. will continue to work with both nations to "address the agreement's shortcomings and our trade deficits with these countries." 

Greer said the U.S. will proceed with a USMCA bilateral negotiating round scheduled with Mexico during the week of July 20.

In a social media post Wednesday, 3rd Congressional District Rep. Adrian Smith said USMCA has been "the gold standard for modern trade agreements" but that "any agreement is only as strong as its enforcement." 

"Unfortunately, over the past six years, our trading partners have repeatedly failed to fully uphold their commitments. With that in mind, @POTUS' decision not to renew is not a termination — it is an opportunity to strengthen enforcement, so the agreement functions as intended," Smith said, adding that he is committed to working with Greer to "secure the strongest possible deal, level the playing field, and reinforce supply chains for America’s agriculture producers and manufacturers."

In a statement Thursday, U.S. Sen. Deb Fischer urged the Trump administration to "prioritize our farmers and ranchers throughout this process" and stressed how the USMCA is "essential to market access for Nebraska producers."

"The goal in this review process should be landing a better deal for farmers and ranchers who desperately need it. Any agreement must guarantee markets remain available and our trading partners carry their weight," Fischer said.

This story includes material from Reuters.