North Dakota will benefit agriculturally from USMCA
House Democrats announced a modified U.S., Mexico, Canada trade agreement Tuesday morning.
House Democrats and the Trump administration have been working on the agreement for more than a year.
New provisions outlined in the agreement, benefits North Dakota's oil and agriculture industries.
A new agreement that made key changes to a 1994 deal.
"There is no question that this trade agreement is much better than NAFTA," said House Speaker Nancy Pelosi, D-Calif.
Gov. Doug Burgum commented saying, "This deal will provide market certainty at a time of extreme hardship for our farmers and ranchers, who are among the most productive in the world."
Market analysts point out the restrictions that will be lifted, if the agreement is approved.
"Canada can sell wheat freely in the United States, but for American Wheat to go into Canada, it was designated feed wheat, which is a major dockage, weather it was high quality. It didn't matter all U.S. wheat is feed wheat in Canada," said Eugene Graner, Hartland Investor Services.
Congressman Kelly Armstrong said in a statement, "My only questions is why it took so long."
Farmers and Ranchers have been facing limitations due to tariffs for years.
"They can freely come into the United States without duties, but process that meat, especially into summer sausage and try to send it back into Canada, 69 percent tariff. So as you can see, big changes, specifically for North Dakota farmers on Ag products," said Graner.
Last year, North Dakota exported $7.1 billion worth of goods to Canada and Mexico.
Sen. Kevin Cramer, R-N.D., hopes this agreement will help with future arraignments with other countries.
"It add leverage to Donald Trump’s on-going negotiations in China, in Europe and many other places," said Cramer.
Changing the future of North Dakota products, ratifying old negotiations.
The agreement has to be ratified by both Canada and Mexico.
Then the House and Senate will have to vote.