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Trudeau talking USMCA in Washington

Trudeau talking USMCA in Washington

Liberals willing to recall Parliament to ratify deal

 

By Jonathan Martin
Staff Writer
Farms.com

Prime Minister Justin Trudeau is in Washington today for talks with President Donald Trump.

The two heads of state are discussing the ratification of the United States-Mexico-Canada Agreement (USMCA). This trade deal will replace the 25-year-old North American Free Trade Agreement once it’s ratified by the legislatures in all three countries.

USMCA is at second reading before the Canadian House of Commons. The government’s goal is to move “in tandem” with the U.S. in the ratification process, Chrystia Freeland, Canada’s foreign affairs minister, said in May.

“Canadian farmers rely on stable markets to succeed and ratifying the CUSMA will allow us to capitalize on further opportunities for growth with our closest trading partners,” said Jeff Nielsen, chairman of Grain Growers of Canada in a Wednesday release. “We need tariff-free access for our export commodities as soon as possible.”

Goldy Hyder, president of the Business Council of Canada, said that an ongoing concern exists the deal may not be ratified with both Canadian and American federal elections on the horizon. He spoke to congressional democrats about his concerns last week.

“We want to make sure that the American side (understands) that we don’t want this process to get caught up in the politics of (our) election,” he told Global in a Sunday interview. “Worse, we might have to open it up after the fact.”

The Liberal government is willing to recall Parliament this summer to ratify USMCA, the Canadian Press reported using an anonymous source. All business of the House of Commons and Senate is terminated when a parliamentary session ends, so if CUSMA isn’t ratified by mid-September, it will “die on the order paper.”

Meanwhile, Nancy Pelosi, the U.S. House speaker, has been blocking the House from taking up legislation to approve the trade pact for months. As speaker, Pelosi has control over House proceedings and doesn’t have to bring the deal up for a vote. She has been the principle obstacle for USCMA’s U.S. ratification, citing concerns over enforcement tools, labor and environmental protections and provisions on pharmaceuticals.


Trending Video

Cheap Argentine Soybean Exports This Week + “Safe Haven” Trade Momentum

Video: Cheap Argentine Soybean Exports This Week + “Safe Haven” Trade Momentum


Argentina suspended agro-export taxes early this week, from 26%, to increase their US dollar reserves. It lasted for 3 days by which time Argentina raised $7 bil.
This came at the wrong time as the US & China are working towards agreeing to a trade deal. Cheap soybean supply from Argentina works against that objective as China does not now need immediate US soybean supply. They reportedly scooped up 35 cargoes of Argentine soybeans. China's soybean reserves are said to be 6 MMT.
The US also reportedly has agreed to provide financial aid to Argentina.
US corn YTD export sales for 25/26 at record highs, with no Chinese business.
Drought in the US Midwest remains in place & near-term weather outlook remains dry, leading to a dry crop finish.
"Safe Haven" commodity trade momentum picks up as gold goes to record high territory due to economic uncertainty, trade wars, and expectations another US Fed rate cut.
Headline news that India is looking to buy more US crude oil and work towards a US-India trade deal- US tariffs are now at 50%.
USDA Sept. Hogs & Pigs report shows more contraction rather than expansion- supportive for hog futures.