News

NAFTA negotiations ongoing, but optimism exists

Reading Time: 2 minutes

The sixth round of renegotiations of the North American Free Trade Agreement (NAFTA) recently concluded without major headway providing confidence an agreement is near. However, the productive conversation and signs the concerns of the ag community are being heard have been encouraging, according to Melissa Kessler, director of strategic relations for the U.S. Grains Council (USGC).

Melissa Kessler

Kessler said early concerns were that the United States could pull out of NAFTA while renegotiations were underway, which would have large ramifications for the country’s ag sector. Outreach by the ag community, business community and more to policy makers, state leaders and farmers on the effects withdraw would have on markets and the whole process is being heard.

“Outreach over the last several months about how important the NAFTA markets are to grain farmers and the grain industry has been critical,” Kessler said. “That message has been received by many in the Administration, and negotiations are ongoing.”

It also appears the deadline to reach a new deal is becoming more flexible, which is helpful to reaching a successful conclusion, according to Kessler. When the negotiation process started, it was believed a new deal would need to be agreed upon prior to March due to upcoming elections in Mexico. The next round of NAFTA negotiations is set to take place in early March, followed by a tentative round scheduled for early April.

USGC has been involved in negotiations, with representatives present at each round. With their presence, they aim to express the urgency to reach an agreement for American agriculture. USGC has also been active engaging commodity groups and more to organization grassroots efforts promoting the importance of the free-trade agreement.

The impact of current delays are already being seen in Mexico, where they are looking at alternative sources of corn, according to Kessler. The top customer of U.S. corn has started working with countries like Brazil to lessen their dependence on its neighbor to the north.

While it may be discouraging to see another round of negotiations pass without resolution, Kessler said now is not the time to panic. Instead, it is an opportunity for farmers to still get involved and help drive home the importance of NAFTA to all stakeholders. The Minnesota Corn Growers Association has worked with the National Corn Growers Association to encourage farmers to reach out to their representatives, as well as to organize a social media campaign last December.

“Panicking helps nothing; instead it is better to reorient that energy to educating yourself and others,” Kessler said. “We need to talk with local community members at the Rotary club or coffee shop and get them engaged. We need more corn growers to get involved.”

Did you like this article?

Share this post with your friends!