Features

5 Trade Agreements Affecting Canadian Ag


NAFTA/USMCA

NAFTA/USMCA

The North American Free Trade Agreement (NAFTA) between the U.S., Canada and Mexico came into effect on Jan. 1, 1994.

When the three countries signed the deal, estimates suggested NAFTA would add US$1.88 billion of Canadian ag exports to the U.S. per year.

In 2018, while NAFTA was still in effect, Canada exported US$23 billion of ag goods to the U.S.

In 2017, the three countries began negotiations on a revamped NAFTA, which became the United States-Mexico-Canada Agreement (USMCA).

The deal, which Canada has yet to ratify, included additional dairy market access for the U.S.

Because Canada conceded dairy market access in the USMCA, CPTPP and CETA, the federal government committed $1.75 billion in compensation for Canadian dairy producers in November 2019.

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