▶ 0:05:29I don't want to hear it. >> the committee will come to order. Welcome and thank you for joining today's hearing entitled agricultural perspectives on the future of the usmca. After brief opening remarks, members will receive testimony from our witnesses today, and then the hearing will be open to questions. So once again, good morning, everyone, and thank you for joining us today at this important hearing to discuss U.S. agricultural perspectives on the future of the united states.
▶ 0:05:58Mexico-canada agreement, otherwise known as usmca. To each of our witnesses, thank you so much for taking time out of your busy schedule to share your expertise with us. As we all know, usmca is a trilateral trade agreement between U.S. mexico, and canada that entered into force on july 1st, 2020. Usmca replaced the north american free trade agreement, or nafta.
▶ 0:06:23But most importantly, it created a more reciprocal, balanced free trade agreement between our countries. As the agreement is up for review in july. It is more important than ever to talk about what usmca means for U.S. agriculture. Usmca maintains tariffs free treatment for certain agricultural products, while expanding market access for a range of U.S. grown commodities. This has proven to be extremely beneficial not only to our U.S.
▶ 0:06:52Farmers, ranchers, foresters, and agribusinesses, but also to U.S. consumers and the economy as a whole. To get us started, I'd like to share a few statistics that highlight those benefits. Economic models show that in 2024 alone, agricultural and seafood exports to canada and mexico generated $149 billion in total economic contributions to the U.S.
▶ 0:07:18Economy, supporting nearly half a million american jobs and generating $36 billion in wages. Since usmca took effect, mexico and canada have collectively purchased more than $60 billion in U.S. ag commodities annually, accounting for roughly one third of all U.S. ag exports. Mexico and canada together account for over 40% of all U.S.
▶ 0:07:44Dairy exports by value, meaning that usmca remains the most commercially significant trade agreement for the U.S. dairy industry. For the U.S. forest products sector, canada accounts for 39% of imports, and mexico accounts for 24% of the export market. For fruits and vegetables. Exports from the U.S. to canada and mexico reached over $7 billion in 2024, representing roughly two thirds of all global U.S.
▶ 0:08:13Fresh produce exports. Canada and mexico together accounted for $4 billion in exports and marketing year 2024. For the soybean industry in 2025, U.S. meat and poultry exports exceeded $23 billion, and exports to canada and mexico accounted for $8 billion of that total.
▶ 0:08:34For agribusinesses, usmca provisions on things like sanitary and phytosanitary measures help ensure that legitimate health and safety rules do not become barriers to trade. A recent study by purdue university also has found that north american trade agreements, including usmca, have helped lower food prices for U.S. households, generating an estimated savings of $700 per year.
▶ 0:09:01Now, these statistics, and many others across the agricultural commodities prove why usmca is so important to the U.S. ag industry. Now, I must also recognize that there are provisions within usmca that could and should be improved upon in the upcoming renegotiations. Canada's implementation of its dairy commitments on both the trqs and export disciplines have not met the mark. U.S.
▶ 0:09:26Forest products manufacturers continue to struggle under chapter ten binational panel review process, reinforcing and building upon usmca labor requirements, biotechnology provisions, food safety standards and registration approvals will be paramount as we look to the coming months. I am confident that the U.S.
▶ 0:09:48Government will continue to work closely with industry experts and our trading partners to renegotiate and solidify this critically important trade deal. Now, I look forward to hearing from our witnesses today about the ways in which usmca impacts their operations, as well as what their suggestions are for improvements. So thank you again to our witnesses for being here today.
▶ 0:10:12With that, I'd now like to welcome the distinguished ranking member, the gentlewoman from minnesota, miss craig, for any opening remarks you would like to give. >> thank you, Mr. chairman. Good morning, and thank you to our witnesses in advance for your testimony today. I look forward to hearing from you about the importance of usmca improvements that we can make during this review process and the overall trade environment.
▶ 0:10:39I want to say up front that while I'm happy to have a great group of witnesses before us, I'm disappointed that ustr and usda did not make themselves available for this hearing. Agriculture is a huge part of usmca, and this committee needs to have the opportunity to hear directly and publicly from the administration on how they are advancing agriculture interests during negotiations right now.
▶ 0:11:07America's farmers are facing the worst economic crisis since the 1980s. Inputs are up, prices are down, and markets in many cases have been decimated. Now more than ever, they need trade certainty to help weather the storm. They are pleading for it. Not trade, not aid. Yet for the past year and a half, we've watched this administration do the exact opposite.
▶ 0:11:33It's destroyed america's reputation as a reliable trade partner. We've seen an abuse of tariffs and an inconsistent approach to trade barriers that raise prices for consumers, while creating an unpredictable business environment. Amidst this cloud of economic uncertainty, family farmers have been able to largely turn to our allies to the north and south as reliable markets for our goods.
▶ 0:12:01They've served as ports in the storm during this difficult economic times. Now, by threatening to blow up usmca, the president and his administration are threatening the last source of trade certainty. Our farmers have their right to have concerns. This president is unstable. In the past year, the president has asked who would ever sign a thing like this?
▶ 0:12:31This might surprise the current trump administration, but usmca was negotiated by the first trump administration and signed by president trump. And while usmca may not be perfect, there are certainly improvements that we should make. It's still vital for american farmers, ranchers, foresters, and businesses in our continued pursuit to feed, clothe and fuel the world.
▶ 0:12:57Mexico and canada remain our top agriculture trade partners. Our relationships with these allies put money in the pockets of family farmers and creates and supports jobs up and down the food supply chain. In just the last year, my state, minnesota, exported over $2 billion worth of agricultural products to mexico and canada.
▶ 0:13:21Our top ag exports are corn grain and oilseed milling products and soybeans. Minnesota exported 51 million in eggs to canada and 44 million worth of sugar to mexico. In total, agricultural exports to mexico and canada support nearly 10,000 jobs. In minnesota.
▶ 0:13:44That's ten 000 people in minnesota able to keep food on their table, raise a family and put a roof over their head because of north american trade. That's 10,000 minnesotans whose jobs are at risk because president trump would rather bully allies than build with them. It worries me when the president calls usmca irrelevant.
▶ 0:14:09It's even more concerning that at a time when we should be working with our allies to lower costs for farmers and fight back the influence of china, that the president announced a new 10% tariff on canada, mexico and the eu. The timing could not be worse for more chaos. Our farm economy cannot take any more shocks to the system. Right now, we need to be strengthening our relationships with allies, not undermining them.
▶ 0:14:39And I think that the testimony we hear today will affirm that trade across north america is absolutely vital. I look forward to having a frank conversation today. Thank you again to our witnesses for being here. And, Mr. chairman, I yield back. >> the chair would request that other members submit their opening statements for the record, so the witnesses may begin their testimony and ensure that there's ample time for questions. Uh, our first witness today is Mr.
▶ 0:15:04Michael lichty, the chief insights and optimization officer at dairy farmers of america. Our next witness is Mrs. christian saurwein, the vice president of the government and corporate affairs at at weyerhaeuser. Our third witness today is Mr. dave pegula. Uh, Mr. bigelow is, uh, is the president and chief executive officer at the western growers association. And I'll now yield to the ranking member to introduce our next witness. >> thank you, Mr. chairman.
▶ 0:15:34Our next witness today is Mrs. jamie byer. Mrs. byer has a farm near wheaton, minnesota, where she and her husband, rod, grow soybeans, corn, sugar beets and alfalfa. She serves on the board of directors of as and is an executive committee member at the american soybean association. Thank you, Mr. Mrs. bayer, for being here today, and I look forward to hearing the farmers perspective. >> our fifth witness is Mr.
▶ 0:16:02Michael shump, the senior director for international affairs at the meat institute. And our final witness today is Mr. neil harrington, the senior vice president for the americas. Uh, program at the united states chamber of commerce. I want to thank all of our witnesses for joining us today. Uh, I think hearing from you all is a great pretext to our work with us to, uh, because we want to be your voice.
▶ 0:16:28And so really excited about this, uh, this panel that we've, uh, mustered together today. And we're now going to proceed to your testimony. You each have five minutes to timer in front of you. We'll count down to zero at which time your time has expired. Uh, Mr. lichty, please begin when you're ready. >> all right. Thank you, chairman thompson.
▶ 0:16:52Uh, chairman thompson, ranking member craig and members of the committee, thank you for the opportunity to testify today on the importance of the united states mexico, canada agreement to the us dairy sector. My name is michael lichty, and I serve as chief insights and optimization officer, officer for dairy farmers of america. Dfa is the largest dairy cooperative in the united states, representing nearly nearly 5000 family dairy farms and marketing more than 64 billion pounds of milk annually.
▶ 0:17:20Our scale gives us a direct line of sight into how trade policy shapes the milk prices our farmer owners depend upon to sustain their operations, their families and their communities. I appreciate the opportunity to share our perspective on how usmca is working today, and where improvements are needed to ensure the agreement delivers real results for our farmers. As we approach the joint review. Exports are essential to the future of the us dairy industry.
▶ 0:17:48Today, export demand accounts for roughly 17% of us milk production and is a key driver of growth across our sector. For dairy farmers, the ability to access and compete in global markets directly supports the milk prices they receive and the investments made across rural america. Within the broader export picture, usmca remains the most important trade agreement for us dairy. Mexico and canada together account for more than 40% of us dairy export value.
▶ 0:18:16For our farmers, stable and reliable market access is not optional. It is foundational to their ability to operate and plan for the future. First, I want to emphasize that usmca is working well in mexico. Mexico is the most important trading partner for the us dairy industry, purchasing billions of dollars of us dairy products each year that are used throughout the manufacturing, retail and food service channels.
▶ 0:18:42This relationship has been built over decades through open markets, strong partnerships, and close coordination between our industries. It stands today as a clear example of how trade agreements can deliver mutual benefit when implemented effectively. For dfa, this success is very real. Mexico is our largest export destination, representing over 14% of our total export revenue. This growth reflects what happens when us dairy farmers are given a fair opportunity to compete.
▶ 0:19:14They are able to deliver, and every dollar of export revenue generated in mexico flows back through our cooperative and supports the milk prices paid to our farmer owners as we approach the joint review. It is critical that we preserve this success.
▶ 0:19:28That includes maintaining duty free access, ensuring that emerging policy developments such as mexico's push for milk self-sufficiency or the potential restriction on common cheese names, do not undermine the open market access that has supported our growth thus far. At the same time, usmca has not delivered the same level of results in canada.
▶ 0:19:51While the agreement established new opportunities for market access, those opportunities have not consistently translated into commercially meaningful outcomes for us dairy exporters. In practice, canada's administration of its dairy quotas has limited their usability. In some cases, access that was negotiated has been only partially utilized.
▶ 0:20:14For example, in 2025, less than 10% of available access under the yogurt quota was ultimately filled. At the same time, canadian dairy pricing policies, especially for nonfat milk solids, continue to create conditions that distort trade and impact competitiveness for U.S. producers. For our farmer owners, the outcome is clear access that exists on paper is not consistently translating into real market opportunities.
▶ 0:20:44As the joint review moves forward, improving how these commitments function in practice will be important to ensuring the agreement delivers real results for U.S. farmers. In closing, usmca remains one of the most important trade frameworks supporting the us dairy industry and the rural communities we serve.
▶ 0:21:02As policy makers look ahead to the joint review, we encourage a focused approach preserve what is working, particularly our strong relationship with mexico, while ensuring that the agreement delivers meaningful results across all markets. At the end of the day, our farmers are asking for one thing a fair opportunity to compete. When they had that opportunity, they win.
▶ 0:21:24And with the right focus, usmca can continue delivering the opportunities for years to come to preserve the next generation coming to the family farm. Thank you, and I look forward to your questions. >> Mr. lucky. Thank you so much for your testimony. Uh, Mrs. uh, saurwein, please begin when you're ready. >> thank you, Mr. chairman. Ranking member craig, and honorable members of the committee.
▶ 0:21:47I am kristin saurwein, vice president of government and corporate affairs at weyerhaeuser, appearing today on behalf of the national alliance of forest owners, of which weyerhaeuser is a member. Nafo represents private forest landowners who collectively own over 44 million acres of sustainably managed working forests in the united states. Weyerhaeuser. We own 10.5 million acres.
▶ 0:22:08We appreciate the opportunity to share our perspectives on why trade policy matters to the us forest products sector, and offer some ideas on how congress can ensure a level playing field for the american forest landowners. American private working forests are among the most productive and sustainably managed in the world. We grow 53% more fiber than we harvest annually.
▶ 0:22:36Unfortunately, we are seeing some significant market disruptions. Since 2014, there have been over 35 pulp mill closures and a 20% contraction of logging capacity in the united states. Increasingly, export markets are an important segment of the overall economic picture for our our sector. I want to talk a little bit about some trade data. First, in the us, log and wood exports. Woodchip exports.
▶ 0:23:02Um these are fairly constrained markets with the trade barriers recently put into place by china in 2025. Our primary trade partners are now canada, japan and vietnam. Given this concentration, we remain fairly vulnerable to significant price deflation when any of these markets tighten. When looking specifically at usmca, you'll find that canada is an importer of hardwood logs and chips and an exporter of softwood lumber and other wood products.
▶ 0:23:32While the us exports finished lumber and other wood products to mexico. That's about 24% of our domestic production in the united states. Good policy can help support the sector and improve market stability for our landowners. We would point you in three, three, um, three main areas.
▶ 0:23:52First of all, energy markets, fixing the definition of woody biomass and the renewable fuel standard to ensure that low value and residual quality wood are moved into energy markets. Uh, is, is free to the federal government and is an immediate uplift for landowners and for mills in the united states. Second is housing policy. Housing starts drive lumber demand.
▶ 0:24:17Nafo supports the house passed 21st century road to housing act, and we hope your senate colleagues join you soon. And finally, trade policy. Fair and enforceable trade rules are critical, as are the removal of the non-tariff barriers, both sanitary and phytosanitary, and then tariff support for domestic manufacturing operations. The united states should be viewed as a wood basket to the world.
▶ 0:24:42We operate under the highest sustainability standards and have more timber than we can, um, and more timber than we can process domestically. And unfortunately, year over year trade data shows that we are actually being reducing our exports and not increasing them. And we'd like to see that changed.
▶ 0:24:59I'm going to point you to my written testimony on some other other areas of trade, such as china, india and the european union, but focus primarily on usmca for the usmca. Um, there's a bit of a quirk for us. At least we view it as a quirk in chapter ten, which is one of the, um, adjudicatory, uh, chapters used to be chapter 19 and nafta. For those who are interested, we would ask that you consider eliminating chapter ten and give it a really hard look.
▶ 0:25:29It was originally envisioned as a temporary provision while the wto was being stood up. In our view, chapter ten is obsolete but can be used to drag out disputes and has become a little bit more political than adjudicatory lately. Uh, and in some nafo is committed to being a resource for this committee as you work through these issues.
▶ 0:25:54We believe that with the right policy support, america's forests can be an even greater engine for rural prosperity, nature and climate positive outcomes, and national economic strength. Thank you and look forward to your questions. >> Mr. solomon, thank you so much for your testimony. Mr. polak, please begin when you're ready. >> thank you, Mr. chairman. Ranking member craig, members of the committee. My name is dave puglia. I'm the president and ceo of western growers. Western growers.
▶ 0:26:24Members produce, pack and ship fruits, vegetables and tree nuts from the western united states. But our members operate throughout the united states and many also operate abroad. In total, our members account for roughly half of the annual fresh produce grown in the united states. I'm very pleased today to be able to provide testimony from our perspective of the perspective our members regarding the review of the us mexico-canada trade agreement. First, maintaining tariff free access.
▶ 0:26:50Canada and mexico rank first and second, respectively, in terms of exports and represent roughly two thirds of all global U.S. fresh produce exports. Our three markets have been integrated for so long now that many of my members speak about their sales into canada and mexico, the same way they speak about sales within the united states. Western growers members thus support maintaining tariff free access in north america.
▶ 0:27:11While there may be some exceptions tied to trade adjudications or other specific cases, the general rule should be duty free access for produce between our countries. Western growers also urges that the united states and its partners affirm that usmca framework and tools should be the primary vehicle to address trade issues between the signatory nations. We urge the administration to conclude this work quickly in order for trade flows to normalize and for trade tension to abate.
▶ 0:27:39While some of our products were temporarily placed on canadian retaliation lists last year, just as critically, the trade tension between our countries has resulted in canadian consumers and, by extension, canadian retailers looking to diversify away from american produce. While western growers supports the continuation of a free trade agreement with our north american neighbors, we also believe improvements should be made to usmca. As members of this committee know, growing and harvesting fresh produce requires a huge amount of human labor.
▶ 0:28:07Indeed, labor's share of the cost of production is nearly 40% for fruit and vegetable growers and can be even higher for some. Moreover, average hourly earnings of U.S. ag workers have greatly outpaced wage inflation in recent years. Given this reality, one of the biggest persistent disadvantages U.S. producers have when competing against imports is the disparity in labor costs and standards. Western growers previously raised this as a top issue during president trump's first term.
▶ 0:28:32Ultimately, significant labor reforms were enshrined to primarily address mexico's comparatively lax standards. This included wage increase commitments and pathways for signatory countries to sanction each other for violations. We note that there have been successful changes to mexican labor laws and positive results for certain sectors since usmca came into force. Nevertheless, there continue to be barriers in place for the promise of usmca to be fully fulfilled.
▶ 0:29:00Mexican government oversight remains underfunded, and various budget reductions are reallocations of challenge the rapid and full implementation of the promised labor reforms. So we support efforts to reinforce and build upon usmca's labor provisions, particularly as it relates to wages and worker protection laws. Doing so will not only promote better conditions for mexican workers, but also foster fairer competition with the united states.
▶ 0:29:21Regarding bankruptcy challenges, among the key challenges in perishable ag trade across north america is the issue of reciprocal, enforceable mechanisms to protect fresh produce growers against nonpayment. In the united states, congress long ago provided a trust mechanism as part of the perishable agricultural commodities act, which grants fresh produce shippers first priority creditor status in the event of a buyer bankruptcy. In 2024, canada adopted a similar mechanism.
▶ 0:29:47We would urge that in the usmca review that mexico be asked to adopt a similar mechanism to provide equivalent protection for exporters of fresh ag commodities. Such a tool would establish trilateral safeguards, ensuring fair and secure trade access. We also called out the need for enhanced food safety provisions. As the chair noted, we have the most rigorous standards in the united states with respect to food safety and inspections.
▶ 0:30:16However, we don't see the same commitment south of the border because of our concerns about foodborne illness. The us government has increased government inspections of domestic farms, and there has been a boost in private investment by the producers themselves in enhanced food safety systems. Food safety compliance, though, cannot stop at the border. In 2021, roughly 60% of all fruit consumed in the united states was imported and nearly 40% of all vegetables. With mexico being the dominant exporter.
▶ 0:30:42Usmca renewal presents an opportunity for the united states to ensure that food safety, oversight and standards are as vigorous in mexico as they are domestically. Mr. chairman, we appreciate the opportunity to provide these and other perspectives on renewal of the agreement, and again, would urge that usmca be continued but with important changes to rebalance the. The state of play between our our our three countries. Thank you. >> Mr.
▶ 0:31:10Thank you so much for your testimony. Uh, Mr. buyer, please begin when you're ready. >> thank you, chairman thompson, ranking member craig and members of the house agriculture committee. It is an honor to join you today to testify on behalf of the american soybean association regarding usmca. As ranking member craig mentioned, my name is jamie bayer. I farm with my husband in minnesota and south dakota, where we grow soybeans, corn, sugar, beets, and alfalfa.
▶ 0:31:38I also serve as a member of the executive committee, which for asa, which represents U.S. soybean farmers across 30 soy producing states. The U.S. soybean industry has a profound positive impact on the U.S. economy, with the entire soy value chain generating an economic impact of 124,000,000,000 in 2025. However, the trade uncertainty plaguing our industry this marketing year highlights the importance of stable, long term trade relationships for U.S. soy.
▶ 0:32:07Soybeans are the largest agricultural export in the state of minnesota and the U.S. at large. Robust international trade is a top priority for asa, and we work together with the U.S. soybean export council and the world initiative for soy and human health to continue operating and opening new global markets while maintaining long term export customers. According to the agricultural coalition for usmca, which includes nearly 50 U.S.
▶ 0:32:36Ag groups including asa, agricultural and seafood exports under usmca generated $149 billion in economic output, supporting nearly half a million U.S. jobs and 36 billion in U.S. wages since the usmca was enacted. The value of ag exports to canada and mexico has increased by 47%, compared to only 18% for the rest of the world. For the U.S. soybean sector, the importance of usmca cannot be overstated.
▶ 0:33:06Usmca has provided stability and predictability for integration of north american agricultural markets, especially through the guarantee of duty free treatment for soy and soy products in the last complete marketing year. Canada and mexico together accounted for 4 billion in exports, or just over 13% of total soy complex exports.
▶ 0:33:30In addition to this, canada also remains the top export market for biomass based diesel, a key value added market for U.S. soy usmca upgraded nafta in several important ways, particularly through the inclusion of a strengthened chapter on sanitary and phytosanitary measures, which builds on the rules that already apply as part of the world trade organization's sps agreement.
▶ 0:33:54The revised agreement also included a novel section on agricultural biotechnology that preempted disruptive trade barriers stemming from the use of genetically engineered traits. Both additions modernize the agreement for U.S. agriculture as a top priority in the five year review of usmca. Is the wholehearted preservation of the trilateral agreement between the countries that maintains the comprehensive duty free access of usmca.
▶ 0:34:19The wto plus sps chapter, and an effective dispute settlement mechanism. We support a full 16 year extension of the current agreement and do not advocate for major changes to existing provisions of the agreement. Usmca is critical for the U.S. soybean sector and should be continued without creating disruptions or additional uncertainty.
▶ 0:34:45However, there are minor adjustments to usmca that the three parties could consider, including adjustments that help the agreement better facilitate agricultural trade. These recommendations include setting maximum residue limits more effectively without undermining the effectiveness of regulatory approval processes and harmonizing grain inspection across the three parties to minimize transportation delays and support efficient agricultural shipping.
▶ 0:35:11These small improvements to usmca would benefit agricultural trade and prevent additional barriers to trade. Again, assay strongly supports a full 16 year renewal of usmca without delay. As soybean farmers continue to face a challenging economic landscape. Failure to renew usmca would be catastrophic. Maintaining free, open, rules based and fair trade with north america is critical for the continued success of U.S. agriculture.
▶ 0:35:40Usmca, in many ways, is the gold standard trade agreement. President trump negotiated this agreement. Overwhelming bipartisan majorities supported it, and entire industries, companies, farmers, and families depend on it. Thank you again for the opportunity to testify on behalf of U.S. soybean farmers. Asa appreciates the committee's focus on the importance of usmca renewal to the ag industry. I look forward to your questions. >> Mr. meyer, thank you so much for your testimony. Mr.
▶ 0:36:10Trump, please begin whenever you're ready. >> thank you, chairman thompson, ranking member craig, and members of the committee for the opportunity to testify today. My name is michael shump, and I'm the senior director of international affairs at the meat institute. I am here today to underscore the us meat industry's support for the us mexico canada agreement, and to respectfully request that members of this committee work in consultation with the trump administration to preserve the agreement's benefits for american agriculture.
▶ 0:36:38The meat institute is the us's oldest and largest trade association, representing packers and processors of beef, pork, lamb, veal and processed meat products, and meat. Institute member companies account for more than 95% of U.S. output of these products. The us meat industry supports more than 3.2 million jobs, providing $205 billion in labor income and generates $912 billion in total sales.
▶ 0:37:06International trade is particularly vital for the long term strength and growth of the us farm economy. In 2025, us meat and poultry exports exceeded $23 billion, and exports to canada and mexico accounted for $8 billion of that trade. That represents 35% of our total U.S. meat and poultry exports. Usmca has fostered an integrated north american meat industry that has created opportunities for U.S.
▶ 0:37:33Meat exports to flourish worldwide, and for american agricultural producers, workers, and consumers to thrive. It is the world's gold standard trade agreement, eliminating most tariff and non-tariff barriers on us meat and livestock products, and has yielded a predictable, transparent trade environment for american businesses, rural and agricultural communities and american workers.
▶ 0:37:54In 2025, canada was the us's fourth largest export market for beef and pork by value and the second largest market for our poultry exports. Canada is the top market for U.S. processed pork products like bacon, ham and sausages, which boost the U.S. pork industry's revenue while offering protection against volatile demand for these products in markets like china and southeast asia.
▶ 0:38:19Meanwhile, mexico was the us's third largest beef export market by value and the top value destination for U.S. pork and poultry exports in 2025. Mexico is a key market for U.S. beef and pork variety meats products like beef tongues and pork jowls, which find stronger prices and consumer demand. Outside the U.S.
▶ 0:38:38Beef exports to canada and mexico added $91 in value per fed head, and pork exports to both markets added more than $28 per market hog in 2025. Maintaining this robust U.S. meat trade with canada and mexico is crucial to reclaiming america's agricultural trade surplus, walking away from or significantly undermining the agreement would drive up the trade deficit, depress wages, spur increased processing capacity in canada and mexico to the detriment of U.S.
▶ 0:39:09Agricultural producers, and raise costs for american consumers. Canada and mexico are also leading suppliers of livestock, beef, pork and poultry products to the U.S. illustrating the dynamic nature of the north american packing and processing economy. Imported products from our usmca partners contribute to the resilience of the U.S.
▶ 0:39:27Food supply chain complement rather than displace, domestic production and moderate inflationary pressures, driven by strong demand in imports from canada and mexico generate $3.4 billion for american cattle producers and meat companies. Renewing usmca is also imperative to our national security. The integrated supply chains across north america reduce dependance on adversarial countries for critical food and agricultural inputs, and have made the U.S.
▶ 0:39:57Less vulnerable to geopolitical disruptions that could threaten our own economic and security interests, including our food supply. Usmca prevents competitors and adversaries from siphoning off market share that has been cultivated for decades by american farmers and ranchers. Thanks to usmca, promotion of science and risk based trade, strong consultative and dispute settlement provisions, and enforceable access commitments, the U.S. meat industry is not subject to excessive and unwarranted regulatory regimes.
▶ 0:40:27Usmca ensures that within north america, U.S. exports and american farmers, ranchers, and businesses face the fewest regulatory barriers and enjoy the most unfettered access to the canadian and mexican markets. When issues do arise, the agreement's consultative provisions are appropriately designed to adjudicate disagreements and, crucially, enforce decisions to guarantee compliance. No other trade agreement can boast the same success.
▶ 0:40:51I appreciate the opportunity to provide this testimony and stand ready to work with you to support the preservation of the usmca for the benefit of the U.S. meat industry and the broader american farm economy. I look forward to taking your questions. >> thank you so much for your testimony. And, Mr. harrington, please begin when you're ready. >> chairman thompson, thank you.
▶ 0:41:14Thanks to ranking member craig and the distinguished members of this committee, um, for this really important opportunity to talk about usmca's impact on american agriculture. We at the us chamber are unabashed supporters of usmca, because the agreement has proven itself indispensable to U.S. businesses, farmers, growers, producers, workers, and consumers. More than 13 million american jobs depend on trade with canada and mexico, and the usmca has fostered U.S. economic growth in a manner that supports many additional high wage positions. U.S.
▶ 0:41:45Manufacturers export more made in america goods to canada and mexico than they do to the next 12 largest U.S. export markets combined. Canada and mexico are the top export destinations for more than 100,000 small and medium sized american businesses, including many family farms and growers, which benefit from the usmca, a first of its kind provisions catering specifically to smes that serve as our economy's primary engine of job creation. Our north american neighbors are also the source of critical imports essential to the competitiveness of U.S.
▶ 0:42:16Industry and manufacturing, many of which are unavailable from domestic sources at reasonable prices or in sufficient quantities. Indeed, no sectors embody the success of usmca more than food and agriculture. Canada and mexico are the destinations for a full one third of U.S. ag exports, totaling $59 billion annually. Canadian and mexican foreign direct investment in the U.S. and U.S.
▶ 0:42:40Food sector totaled $17 billion in 2024, up more than 25% since usmca's entry into force in 2020. Best in class sanitary and phytosanitary rules have helped ensure transparency, information sharing, and science based decisions on which U.S. food and ag interests rely in all three countries. And no sector better exemplifies the deep, intertwined supply chains and co-production, which have become true hallmarks of the usmca. Efficiency canada the U.S.
▶ 0:43:09Boasts deep industry connections that support trade within sectors and products such as grains, feed, beef and pork. Mexico and the U.S. enjoy a complimentary trade relationship that sees grains, oilseeds, and meat flow south, while vegetables and fruit that the U.S. doesn't produce in the winter or in sufficient quantities flow north. As the joint review process advances, the chamber's priorities are straightforward. First, maintain and strengthen the trilateral rules of the usmca that support jobs and enhance north american competitiveness.
▶ 0:43:41Second, provide certainty and confidence to investors and producers by completing a transparent, expeditious and orderly joint review. And third, secure a renewed commitment to full compliance with the agreement and enforce the terms when compliance compliance falls short, including in the food and agricultural sectors. My colleague michael mentioned that canada is falling short on usmca compliance and implementation on dairy market access.
▶ 0:44:05Mexico is failing to adhere to its obligations related to the pace of approvals for agricultural biotechnologies and food products, and in imposing tariffs on canada and mexico. The U.S. is in violation of the U.S. usmca core commitment to maintain tariff free trade within north america. Section 232 tariffs on steel and aluminum, in particular, have adversely impacted prices of products ranging from farm equipment to food and agricultural packaging.
▶ 0:44:31Indeed, today's hearing coincides, as you mentioned, Mr. chairman, with the with the release of the perdue report this week, which we find extremely instructive, U.S. households, uh, save an estimated $700 annually on food costs in today's dollars, equivalent to roughly 7% of household spending, food spending, I should say, thanks to usmca, every 1% reduction in food tariffs is associated with an average two 2.8% decrease in food prices over time.
▶ 0:45:00The benefits of tariff free trade in north america are greatest for lower income households, which spend a larger share of their budgets on food and reversing usmca. Tariff preferences would increase food prices and place additional pressure on household budgets. I will close by echoing the message conveyed in a bipartisan letter to the U.S. trade representative last november by over 100 members of the house of representatives, including many of you on this distinguished committee.
▶ 0:45:27Quote, usmca was truly a landmark agreement for american agriculture when it entered into force, and its positive impact on U.S. agriculture has yet to reach its maximum benefit. At a time when economic challenges threaten the livelihood of family farms, producers need certainty provided under the usmca more than ever. End quote. The U.S. chamber could not agree more with those sentiments, and we will continue working closely with all of you to ensure that the U.S.
▶ 0:45:53Farmers, growers, processors and producers have been a true backbone of this country's economy can continue to leverage duty free trade in north america to create jobs and drive growth. Thank you again for the opportunity to testify, and I look forward to your questions. >> Mr. harrington, thank you so much for your testimony. At this time, members will be recognized for questions in order of seniority, alternating between majority and minority members and in order of arrival.
▶ 0:46:16For those who joined us after the hearing convened, uh, you'll be recognized for five minutes each in order to allow us to get to as many questions as possible. And I now recognize myself for five minutes. The U.S. dairy industry has faced persistent challenges from canada due to their own willingness to implement their tariff rate quotas in a way that allows full market access for U.S. dairy farmers. In 2025, the U.S.
▶ 0:46:44Access negotiated under the yogurt and buttermilk quota was 4135 metric tons, but only 382 metric tons were actually filled, representing just 9% of the utilization canada had already committed to. Uh, given the challenges with canada, what, uh, specific outcomes is the U.S. dairy industry seeking to create a more fair and balanced trade agreement with, with, with canada? Mr. lucky?
▶ 0:47:16>> yeah. First off, chairman thompson, I'd just like to acknowledge your leadership with the whole milk for healthy kids act. Uh, we as participants in the industry see that as such an impactful legislation not only to our farmers, our industry, but also just ensuring the continued nutrition that access for our children and nutrition that tastes good in our minds.
▶ 0:47:34Uh, specific to your question, uh, while we see that there are opportunities to improve upon what was negotiated as a part of the usmca, I think one resolution that comes top of mind is for the quota that was given is to allow the access and full use of that quota and to provide more enforcement for the nonuse of such quota. >> thank you for that, Mr. sullivan.
▶ 0:48:04Miss sullivan, your testimony talks about the us canada softwood lumber dispute and discusses industry interests in addressing the dispute resolution process outlined in chapter ten. And walk us through the current state of the conversations and what you expect to see as it relates to usmca. >> thank you, Mr. chairman.
▶ 0:48:22Um, currently the usmca chapter ten dispute settlement system is a panel process that that seats, uh, three members sometimes there, three from canada, sometimes excuse me, sometimes there, two from canada, one from the us, sometimes there, two from the us, one from canada. But what that results in is that the panels, uh, are often more political than they are, um, adjudicatory.
▶ 0:48:46And they can compel federal agencies to change the manner in which they enforce us laws without a meaningful appeals process. The system is also incredibly slow and has been the source of significant delays in this particular dispute.
▶ 0:49:02Uh, the delays, um, to date are, are we're around to ten years in now and the united states has collected close to $8 billion, but the administration is unable to liquidate these funds into the us treasury until the chapter ten disputes have been completed. We don't even have panels seated for many of them.
▶ 0:49:27Um, so we have submitted comments to ustr and have engaged with ustr directly on this request to change chapter ten. Thank you. >> all right. Thank you very much. Uh, miss byers, your testimony you discussed presidential decree signed by former mexican president andres manuel lopez obrador.
▶ 0:49:45Uh, this decree called for a phase out of genetically engineered corn, as well as a phase out of glysophate, despite a lack of scientific evidence to support these decisions, this policy would have been harmful to many U.S. and canadian farmers. How? How did usmca dispute settlement process serve as a mechanism to resolve this conflict between the us, canada and mexico? >> thank you for the question, chair thompson.
▶ 0:50:13Uh, as a as a corn grower, I am aware of those events as we are in the industry. It's my understanding that the us at first consulted with mexico with no resolution and then was able to request trade dispute panel to deal with the issue, and that canada supported that initiative. The panel convened.
▶ 0:50:35It, was able to review scientific evidence, legal arguments and written testimony, and was able to come up with a plan for compliance with mexico to have that issue resolved and a relatively timely fashion.
▶ 0:50:50So what we have seen in that sort of example is, despite prior testimony, we were able to move this issue out of the political arena into a rule based legal process that utilized an independent panel, and that supplied consequences if the country violated the commitments, and that the trade agreement becomes a path to compliance, because there's that risk of losing the benefit of all those beneficial terms in the in the agreement.
▶ 0:51:21>> well, thank you very much. And I yield back to what few seconds I have left. Now recognize the distinguished gentlelady from minnesota, the ranking member for five minutes. >> thank you, Mr. chairman. Uh, miss bayer, thanks for being here with us today. You know better than anyone how resilient minnesota soybean growers are. But I also know that the last 18 months have been incredibly challenging.
▶ 0:51:43In asa's comments to ustr on the importance of usmca, it concluded by saying failure to renew usmca would be catastrophic given the market loss in china and the growth of brazil as well as argentina. Would soybean growers be able to withstand the cancellation of usmca? And what would that mean practically to growers across the midwest?
▶ 0:52:10And how would that the end of north american trade help our competitors? >> thank you for the question, ranking member. Craig. I, uh, you know, soybean wouldn't choose to be in the spotlight as they have for the past eight years. Um, it's brought a lot of awareness to how our industry operates and our reliance on the export markets.
▶ 0:52:37So usmca for us is kind of a shining star because it provides baseline export market facilitation, but also is an example of how we can grow the industry under a trade agreement. So in contrast to sort of the things happening with china, where we're maintaining quota levels and maintaining trade, we've been able to successfully grow the markets into canada and mexico.
▶ 0:53:04So two times the exports over the life of nafta and usmca to canada and four times into mexico. So we consider it a a big win. And it's very useful for us. >> thank you so much. Um, Mr. sharpe, in my state of minnesota, turkey and pork producers are extremely dependent on trade across the northern border with canada. If usmca were not renewed, how would livestock supply chains be affected? What would it mean for livestock processing?
▶ 0:53:33Along with producers in my state and the cost of production? >> thank you for that question, ranking member craig. Uh, so as you know, usmca has underpinned the growth of an extremely integrated north american meat and livestock industry that's valued at over $16 billion when you include all of our products.
▶ 0:53:52And so livestock, typically from canada and mexico, live cattle, live hogs from canada, travel across the border multiple times, often, um, that live those livestock imports help support operational capacity for american feedlots, as well as for meat and poultry processing companies. And then the meat that is produced from those companies is then either shipped back to canada and mexico, exported to the world, or shared here domestically with our consumers.
▶ 0:54:18And so if we were to disrupt usmca, we would disrupt those those critical supply of livestock imports, as well as the meat that comes from those products. >> thank you so much. Um, Mr. harrington, uh, recent study by purdue university found that the pass through from tariff reductions under nafta and continued under usmca are responsible for saving U.S. households roughly $700 in grocery costs every year.
▶ 0:54:49Families are already struggling to afford food due to the tariffs. So as I see it, americans are at jeopardy of losing the savings. If usmca is terminated, how would a further increase in grocery cost impact american families? And if usmca were terminated, is there any plausible way to realize similar savings in the short term through other policies? >> thank you so much, ranking member craig.
▶ 0:55:18Thank you for recognizing the purdue study. We agree with its findings are incredibly important. Um, underscoring usmca's usmca support for, uh, affordability. And at the end of the day, we believe it's consumers that really do benefit most from the efficiencies of the agreement. Um, yes.
▶ 0:55:39In that study, it also indicated that for every 1% reduction in tariffs, you see a 2.8% savings in household savings rate on food related costs. It's most beneficial to low income consumers because obviously, low income consumers spend a greater proportion of their budgets. Um, and on, on, on food products.
▶ 0:56:01And exactly to your point, if, um, the study also shows conclusively that if we were to lose, uh, duty free access and all the benefits that usmca provides consumers, uh, household goods, uh, specifically in food and agricultural products would, would rise. There's no question about it. Thank you. >> well, I appreciate that very much. And again, thank you to all of our witnesses. Um, we know how important the renewal of usmca truly is. And with that, Mr.
▶ 0:56:31Chairman, I yield back. >> gentleman yields back. The chair now recognizes himself for five minutes. And I, too, want to thank our witnesses for being here today. The usmca expanded market access for U.S. agriculture, including for products and animal byproducts that do not hold the same level of demand in domestic markets. Mr.
▶ 0:56:50Harrington, to what extent do these export opportunities contribute to profitability and efficiency for producers and ag businesses, and what would the economic consequences be if these markets were reduced or lost? >> thank you very much, congressman. Um, in a in a word, if we lost these benefits, it would be devastating to american agriculture and specifically the producers, processors, growers and farmers.
▶ 0:57:19Um, starting with the fact that, um, more than a third of U.S. agricultural exports go to canada and mexico. Um, beyond that, it really what we've seen, what duty free trade and the certainty of the agreement have provided are these incredibly integrated supply chains that are, that are producing, um, opportunities for, for producers and growers and farmers and processors in this country based on, um, intercompany trade from canada,
▶ 0:57:49Complimentary trade from mexico. Um, these create and we have a lot of partners, especially in the american southwest, which will talk about the jobs that these create in the U.S. that complimentary trade with mexico creates, uh, tens of thousands of jobs. Same thing in canada because of the degree of intra company trade being so strong. And those those supply chains being so strong. So, um, absolutely, absolutely.
▶ 0:58:16I mean, your question goes right to the fundamental importance of, of preserving this agreement because it would be very damaging if it if it were to go away. >> Mr. trump, do you want to touch on that from the livestock perspective, selling those pieces and parts and interesting things? >> yeah, absolutely. Thank you for that question, congressman. Uh, so as I mentioned in my opening testimony, trade with canada and mexico return $91 per head for cattle producers and $28 for pork producers.
▶ 0:58:44So maintaining that trade is critical from that perspective. But we also export to canada and mexico high value cuts and as well as, uh, processed products in terms of our pork industry to canada and variety meats to mexico that don't often find demand in other markets. And all of that maximizes carcass value for our producers.
▶ 0:59:07Uh, the one other thing I wanted to mention on this is there's the unintended consequence of leaving usmca is that canada and mexico might then look to other trading partners and increase their own processing capacity. That would hurt and harm our producers, workers, as well as consumers in the long run. >> in my part of oklahoma, the cattle industry is playing a key role in offsetting poor commodity prices and helping many of my constituents remain operational.
▶ 0:59:34So how does the usmca contribute to the profitability and efficiency for producers? Continuing with your last point? >> so, yes, so the agreement, like I said, it helps to maintain strong livestock trade across north america.
▶ 0:59:52Uh, and so if we were to leave that agreement, what we would see is that trade disrupted canada and mexico keeping more of their livestock within, uh, their countries, as well as our producers not being able to have to run at full capacity here within the us. You know, some of the livestock we get from mexico and canada go for feeding operations or direct slaughter.
▶ 1:00:13And so we would see areas of the country not be able to have feedlots operate at their full capacity, as well as our meat companies would would struggle to have that stable supply of consistent animals to produce food that is sent both here to consumers and exported around the world. >> switching gears on this, your testimony mentioned the importance of the biotechnology provisions of the usmca. What do these provisions mean for farmers when investing in new soybean varieties? >> thank you for the question.
▶ 1:00:45Um it takes we've been told 13 years for a trait to be identified and to end up as a seed on a farm. And so the pipeline for the development of technology is always a decade old. And that has to do with our regulatory standards, our safety standards. In the us, usmca helps us capitalize on some of those efficiencies between the countries. So we're not stacking those sorts of processes that we can recognize each other's efforts in that.
▶ 1:01:17And then also it contains commitment to finding pathways for new technology so that that doesn't get bogged down by politics or rhetoric that we have a, a commitment to make sure that we're continuing to work on regulating new traits as well. >> thank you. My time has expired. The chair now recognizes the gentleman from california, Mr. costa, for five minutes. >> thank you very much, Mr. chairman.
▶ 1:01:42And I think it's important that we hold this hearing as negotiations are going on, as we speak with usmca. As I say all the time, food is a national security issue. Um, and I think california certainly proves it as a third generation farmer, clearly, I know firsthand the challenges that we face. We're the largest agricultural state in the nation. Uh, we exported, uh, $23.8 billion in farm products, about 44% of what we grow in california.
▶ 1:02:12They are such crops as almonds, pistachios, dairy wine, walnuts, tomatoes, rice, grapes, strawberries, and citrus. Just to give you a bit of the diversity, uh, I we think they're special. I'm not sure. Uh, we have a communication problem. When people go to the grocery store, they don't go to the specialty crop aisle. Uh, but that's another matter. But people are hurting in farm country, bankruptcies are up.
▶ 1:02:39And this is something that is so critical as I go home every week to talk with my farmers, ranchers, dairy men and women, uh, president trump took nafta one and upgraded it. It needed to be done. Bob lighthizer was very effective in that effort. Put a new label on it, called it usmca, the best greatest trade agreement ever known to mankind.
▶ 1:03:02I think I remember when he signed it in 2020, and that may be, but the fact is, is that it is an important tool between our borders to the north and the south, countries that we have had long term relationships with. For the life of me, I can't understand why we're not using that in the five year review period to deal with the differences, as opposed to insulting comments like a 51st state and other such tactics that I don't think help, uh, the process. We need a deal. We must get a deal.
▶ 1:03:31And it must be trilateral and enforceable and dependable. Farmers need certainty in our marketplace and not chaos. Um, Mr. um, we've worked together for many years. I appreciate your good work with western growers and the special crops I talked about. It's the heart of agriculture, not only in my district, but in california, where growers compete every day in the north american market.
▶ 1:03:56Can you share a bit about the perishable ag commodities act and why it's important for our industry, and why it should be a part of the usmca discussions with mexico? >> thank you, congressman costa, for the question. Appreciate that. Yes, the perishable agricultural commodities act recognizes that a producer of perishable food product, in the event of the buyer going into insolvency or bankruptcy, can't pull the product back by the very fact that it's perishable.
▶ 1:04:23By the time the product has been delivered, the clock is running out on its usable lifespan, and by most standards, the product has been sold. The revenue has been generated to to the to the retailer or to the food service company. Uh, and the grower of course expects to be paid. And so that's the, the heart of the perishable agricultural commodities act. >> we have among the highest standards in the country, uh, california growers, correct? >> that is correct. >> we want them to be strong and consistent and oversight.
▶ 1:04:53Can you give us 1 or 2 examples of imported food safety oversight enforcement that should be improved? You talked a bit about it earlier and how the united states could use usmca to secure that. >> yes. Again, thanks for the question. Very briefly. I'll put it in this context. In 2023, the us fda conducted 11,000 domestic inspections of produce operations, only 1500 foreign inspections.
▶ 1:05:18Even though we have a very significant share of fresh fruits and vegetables coming from abroad, uh, I could show you a case of disparity between an american producer of a fresh produce product and a mexican producer, the same product, in which case the american producer was subject to much more rigorous standards, much more rigorous testing and follow on activity from the fda. While the mexican producer was not. And I think that's an area for improvement.
▶ 1:05:48>> these are non-tariff barriers that we have to deal with. And I think if he could submit that information to the committee, uh, it would be helpful. Mr. trump, with the meat institute, you confirmed, uh, the new world screwworm in texas, uh, usda has confirmed a new, uh, detection in june. Third, in practical >> terms what animal health issues like the scrotum happens. What does it mean for U.S. beef exports? >> thank you for that question.
▶ 1:06:14First, I want to just state that new world screwworm is not a food safety issue, and usda does inspect all of our animals before they go to slaughter and all carcasses before anything would enter the food supply. Uh, what we are happy to see is usda's focus on regionalization and zoning agreements with our trading partners. There should be no impact. According to the world organization for animal health, on any meat product exports. So we would expect those to continue to be exported around the world.
▶ 1:06:45>> thank you. My time is expired, Mr. chairman, but I'd like to submit for unanimous consent a letter that I sent earlier, um, with regards to the issue of, um, naming names like feta, gorgonzola and their impact on the eu tech. Um mexico trade deal takes effect. It's important that we get these name brand naming things worked out. And I hope that's a part of the negotiation. >> seeing no objection so ordered. The chair now turns to the gentleman from georgia, Mr.
▶ 1:07:16Scott, for five minutes. >> thank you, Mr. chairman. And I too, as Mr. acosta mentioned, the non-tariff trade barriers are very concerned about the non-tariff trade barriers that continue to create challenges for us. But Mr. puglia, recently, a bipartisan group of 78 members joined me in sending a letter to ambassador greer, uh, discussing the challenges for U.S.
▶ 1:07:39Specialty crops that are harmed by the dumping of mexican produce into the united states. Um, just making him aware of the challenges as we go forward with usmca negotiations. Um, members from all over the country signed this, including members from your state. What suggestions do you have?
▶ 1:08:00And that that can help our specialty crop growers that are negatively impacted by, um, mexican imports. And, and again, we're, we're for trade, we're for competitive and balanced trade, but it is the dumping of product into, uh, our country, specifically at harvest time that is so challenging in my area. >> thank you, Mr. scott. I appreciate that question.
▶ 1:08:28I would just start by saying that, um, I'm a little envious of some of my colleagues here who represent a single agricultural product. I have 300 plus different agricultural products that fit within the specialty crop category. And I say that because I have to be fair to my colleagues in the special crop industry who are not at the table, we are not of one mind on your question, sir, and I think you know that. >> that's correct.
▶ 1:08:52>> um, but but I think this goes to the point that it is a it's a matter of fact, specific situational circumstances. Uh, my colleagues in the southeast have made a very compelling case, and I think that they have availed themselves of some of the, of the trade tools that we have currently on the books. I would point, for example, to the tomato suspension agreement, which was a quasi adjudicatory process that found mexico to be dumping illegally product in the united states. And as you know, that suspension.
▶ 1:09:23>> you say that again. >> uh. >> they found mexico to be illegal in the united states. Sure. >> it was recorded. Uh, and as you know, the suspension agreement has been terminated, and there's now a 17% tariff as a result on mexican tomatoes into the united states. And so I think as we look at 300 plus different crops, many of which are going across the border both ways, with value added process along the way, I think you have to look at each case in a very specific way.
▶ 1:09:51And I think there are regional implications that vary across the country. >> trade is important and it needs to be competitive and balanced. Um, it, it is different by region. Uh, and it's different by the size of grower as well. Um, western growers have many that grow on both sides of the border. Um, and mexico is, is a country that is our neighbor. Uh, and we need those good trade relations. Uh, miss swain, I want to move to you. Uh, as you know, uh, I represent south georgia.
▶ 1:10:20The, uh, timber prices, specifically southern pine, is way down. Uh, you shared in your testimony that u.s forestry industry has experienced 35 pulp mill closures, many of which are in my state of georgia, resulting in 800 million in annual forest revenue losses. Additionally, the u.s pulp industry has seen an 18% year over year decline in exports to mexico.
▶ 1:10:45What meaningful changes could be made in usmca to better assist the us forest industry, specifically with trade with mexico? >> thank you, Mr. scott. Um, I want to be careful to not attribute the pulp mill closures primarily to trade policy, because that would be a little bit misleading.
▶ 1:11:08The closures reflect, uh, long term structural decline in domestic demand for pulp and paper products. So this is kind of a market problem, not a trade problem. We don't think that usmca is necessarily the right tool for addressing mill closures or the, um, the material that used to go to the mills, which is the forest landowner issue that that I represent.
▶ 1:11:33We think the right tool for that is fixing the renewable fuel standard to create domestic demand for that low value, um, wood that these mills used to absorb. And that is napa's top domestic legislative priority. And it costs the federal government nothing. >> I, I agree with you on the renewable fuel standard issue. I don't agree with you on some of the other comments there, but that's just differences of respectful differences of opinion. I will say this.
▶ 1:11:58The european union deforestation regulation in my last 15 minutes is, is one of those non-tariff trade barriers that is extremely an extremely unfair burden that has been put on major industries in our states. Would you at least agree with me with that? >> uh, absolutely. And I think you will see that they they eudr uh, colloquially referred to is a part of my written testimony. >> yes, ma'am.
▶ 1:12:24>> it puts a significant, um, compliance burden on us growers and producers. >> yes, ma'am. My time is expired, but I think it's interesting that the european union has exempted some of their own countries from compliance with the eu. >> d r time has expired. The chair now recognizes the gentlelady from north carolina, miss adams, for five minutes. >> thank you, Mr. chairman. And thank you to the witnesses for for your testimony. Uh, I want to bring our attention back to the founding principles that made this agreement necessary.
▶ 1:12:54Uh, the us, uh, was founded to be a mutually beneficial win for north american workers, farmers, ranchers, and businesses. And its intent is to bring greater overall relations and unity between north american partners, canada and mexico.
▶ 1:13:10Uh, however, we, we, we now entered a period where this deal, uh, if not renewed with reforms, could do more harm than good, uh, because of this administration's ruthless trade agenda, which includes using tariffs or threat of them to force compliance and, and as a punitive, uh, foreign policy tool to achieve domestic policy objectives. Uh, I represent north carolina and north carolina alone.
▶ 1:13:39Uh, the usmca has supported over 300 000 jobs through exports of these jobs, 36,000 and more were in my district. So I do understand the importance of the agreement, not only to the great state of north carolina, but to my constituents in charlotte mecklenburg. Uh, the usmc is meant to be as good to our families as as it appears on paper. So, um, let me start with you, Mr. harrington.
▶ 1:14:09According to data from usda, north carolina is the country's 13th largest agricultural exporting state shipping, $4.5 billion in domestic agricultural exports abroad. In 2025, canada was the state's largest export market, with 8.6 billion in exported goods in north carolina also exported 5.3 billion worth of goods to mexico in the same year.
▶ 1:14:36So without a strong trade agreement, north carolina's exports to canada and mexico could face millions in extra tariffs and extra taxes. So what are the potential immediate risks to agriculture supply chains and the credibility of american farmers and leading agricultural states such as north carolina? If this renewal is postponed for the 16 year renewal, if the 16 or the 16 year renewal is not ratified.
▶ 1:15:06>> thank you very much, congressman adams. Uh, absolutely. Your question hits on really some really important points. I think, um, certainly for north carolina growers, producers, farmers, this the agreement has been critical. What has also been critical is investment in the state from canadian and and mexican companies, because of these integrated supply chains have created jobs.
▶ 1:15:30Um, I think at the bottom line for us is that, uh, the agreement has really created certainty in terms of establishing rules of the road that companies can depend on. And that's why we're so focused on another 16 years of renewal for this, because that's the certainty that companies need. And that really translates having all of you put that together. And it forms a virtuous circle that benefits at the end of the day, north carolina consumers and consumers across the country for with reduced costs.
▶ 1:16:00>> okay. So clearly the more significant consequences will manifest over time. Nonetheless, individuals in my district who depend on agricultural imports and exports must be able to strategize for their future rather than remain subject to uncertainty. Now, Mr. trump, um, a U.S. farm trade is still running a deficit that's currently 19.7 billion in the first few months of this year and estimated to to climb to about 50 million by the by the end of the year for north carolina that that national deficit hits close to home.
▶ 1:16:30My state leads the country in sweet potato production ranks third in pork production. Yet our farmers are absorbing high operational costs while trying to stay competitive across borders. So given that record deficit, what specific enforcement tools should the U.S. advocate for?
▶ 1:16:47Uh, in 2026, usmca review to keep canada and mexico committed to american agricultural markets, rather than turning to competitors like brazil or the european union? >> thank you for that question. I think that the most important thing for the meat industry in the us is to maintain usmca as it currently is. If we were to withdraw or make significant changes, that would undermine the agreement.
▶ 1:17:15That would definitely give countries like china, brazil, the european union more access to those markets, which would undermine our ability to export there. China, canada and mexico would turn to those export markets, and that would only increase our trade deficit for the meat industry. The way you turn around the deficit is to the agricultural trade deficit is to ensure a strong, healthy, vibrant, long term usmca. >> well, thank you very much. I only have six seconds. I'm going to yield back, and I'll send my question to you, Mr.
▶ 1:17:45Harrington. Thank you. Thank you, Mr. chair. I yield back. >> the chair now recognizes the gentleman from nebraska, Mr. bacon, for five minutes. >> thank you very much. I appreciate all of you being here today and your testimony and taking questions. My first question is, Mr. harrington, if you could just briefly characterize as usmca, been great for our exports and great for our economy? >> absolutely. Congressman. Um, we've seen, I think, a 25% growth in exports over the last of the six years that usmca has been in effect.
▶ 1:18:13>> so it's very important for us, in my view, to get it renewed. Uh, the president has negotiated quote from his feedback about 19 agreements that are more verbal. I think it's important that he get this on paper. We get agreements to get them approved through congress so that we can start leveraging these agreements, because I don't see enhancements right now in our exports, whether it's corn, soybeans, beef, pork.
▶ 1:18:36But are we we haven't seen any uptick in our exports on these verbal agreements that the president has had, uh, during these these tariff negotiations. Have you seen any impact. >> the reciprocal agreements, sir? >> right. >> uh, the reciprocal agreements, I think I would characterize them as kind of too early to tell. Most of them are, you know, a month or two old, a little bit more.
▶ 1:19:01>> so we need to get these on paper and get into congress and formalize them, because it doesn't do any good when the next president comes in and they and they get ripped up. So we, we, we gotta, we gotta turn this into action. In my view, Mr. light, if I may, you were talking a little bit about dairy and some of the issues there in the usmca. Tell me if I'm wrong or if I got this right. I understand that the usmca has provisions that allows canada to have some protectionist measures on dairy, and in turn, they gave us some on wood. Is that true?
▶ 1:19:32>> I guess as it relates to the the impact on what I'm not aware of that. Um, but in terms of what we were able to access, yes, we were given the ability to fulfill some quota limits. However, it's just they have not been fully used at this point. And we look for ways to be able to more fully fill those quota and able to provide the consumers in that country, american dairy products that can fill their needs.
▶ 1:19:56>> I'm of the view that we got to renegotiate this part of the usmca, but I don't really blame canada for what they're doing because it's written into the current agreement, just as it is for us on wood. Uh, though I think this is an area that we can make better with a five year extension. Uh, back to Mr. harrington, if I may, with I have a lot of businesses in omaha that I work with and represent omaha, and they're telling me some of the anger that they're hearing from canadian counterparts in response to some of the president's comments about the 51st state.
▶ 1:20:25I think our tourism is down in half. Uh, they're canceling contracts. What are you seeing at the chamber right now with our economic relationship with canada? >> um, it's been strained. It's, um, I think you characterize the, the impact on brand usa in canada very correctly and saying it's, it's, it's, it's been a very challenging set of circumstances for our brands there, our companies operating in canada also, um, is in some of your districts here.
▶ 1:20:55I'm sure you see convention and visitors bureau, visitors bureau numbers down from canadian travelers. The numbers are down. So this is something that we are very focused on in trying to get this review completed and the negotiations completed, because brand usa is. >> sort of a old school republican, a reagan republican. We're blessed to have an ally up north with the longest undefended border. And we've had great trade. And I just don't see where these slights and and talking down to our neighbor has been helpful at all.
▶ 1:21:24I don't think it's gained us one, one advantage. Um, one last question for Mrs. bayer. Bayer, excuse me. And Mr. shump, how is global tariffs affected your industries? Are you seeing pushback? >> thank you for the question. Um, I think, you know, tariffs can certainly distort the market.
▶ 1:21:49And um prices go down a lot faster than they pop back up. So to your point, written long term trade agreements will give us the stability to be able to make investments and endure for the next generation. >> thank you for that. I'll just add that, uh, what's been critical for us is all of the usmca exemptions.
▶ 1:22:13So for any compliant product like meat and livestock, they have been exempted from all the tariff actions. And so we would recommend that those be continued because that's been critical for our farmers, ranchers and meat, poultry packers and processors. >> I'll just close and I appreciate your your feedback. You know, republicans have long supported like pinpointed tariffs if somebody's treating us unfairly, but we haven't supported global tariffs since the 1930s. It goes against milton friedman, it goes against adam smith.
▶ 1:22:41And I just think it it's we've learned free trade if it's fair is is the best for consumers. And with that I yield. >> gentleman yields back. The chair now recognizes the gentlelady from connecticut, Mrs. hayes, for five minutes. >> thank you. The usmca is critically important to my state and my district. I'm from connecticut and trade with canada.
▶ 1:23:06And mexico supports nearly 3000 jobs in the district and more than 150 000 jobs across connecticut. Together, our two north american trading partners purchased more than $1 billion in goods and services from my district and 5.5 billion from the entire state each year, making the usmca critically important to our local economy.
▶ 1:23:31With the schedule review of the usmca approaching, it's important to recognize what the agreement has provided for stability. The predictability of usmca is essential for export planning, production decisions, and investments for businesses and industries relying on cross-border supply chains. But the on and off tariff tariff approach of president trump has that.
▶ 1:23:53The on and off tariff approach that president trump has taken has led to price fluctuations and unpredictable market conditions. At a time when household budgets are tight, the usmca is especially crucial as it helps support affordability by keeping north american trade predictability predictable and stable for consumers as well as businesses. My question is for Mr. harrington. You mentioned that the U.S.
▶ 1:24:19Chamber of commerce supports trade policies to make the united states the best place in the world to invest, build, hire and innovate. How have the tariff policies implemented by this administration impacted the work of the chamber? The work that the chamber is doing to achieve these goals? >> thank you, congressman. Duty free trade, as you well said, has served north america and connecticut extraordinarily well. That's 30 years of since since nafta came into force.
▶ 1:24:49Um, it's the chamber is very clear, has been very clear, um, and recognizes something one of my colleagues said it is it is important to recognize that the um, exemption of, of, of usmca compliant goods from tariffs has been an important step forward. Um, certainly, uh, for, for our broader economy for processors, growers, uh, and consumers down the line.
▶ 1:25:16But, um, these tariffs, specifically section 232 tariffs that remain are incredibly damaging both to businesses and manufacturers. Um, hugely important and consequential in the, in the agricultural packaging, food, food packaging, um, 40% of, uh, canned goods, uh, cost is represented in the, the aluminum itself.
▶ 1:25:46So tariffs, uh, on our partners such as canada, who provide, uh, 80% of, of imported aluminum, uh, are, are, are harmful to our economy. The chamber's been clear about that. And so that's why with this review, we are, as I said in my opening remarks, we are very clear that duty free trade exclusively needs to return to to north america and the usmca context. >> thank you.
▶ 1:26:09Canada and mexico are not only our top trading partners, but we make things together, creating a highly integrated supply chain across a wide range of industries. For example, connecticut imports certain types of metals like copper, nickel, titanium, zinc, and lead, making up the largest portion of its imports from mexico over 61%.
▶ 1:26:29Connecticut families rely on these important metals to produce manufactured goods, including machinery, aerospace and aviation parts, which account for more than 92% of all goods exported from our state. And canada is the primary destination for these exports. Uh, again, Mr. harrington, if usmca is not reauthorized, what kinds of imports do you expect to see in a state like connecticut, which serves as an intermediary and cross border supply chains?
▶ 1:27:00>> yeah. >> not imports impacts. I'm sorry. >> that's okay. Um, yeah, I think, you know, I mentioned in my opening remarks, um, you know, the criticality of both mexico and canada and in providing the us, um, the intermediate goods, uh, especially in metals, uh, your metals examples as well taken, um, in that we can't either, uh, supply ourselves or are not affordable to produce in this country.
▶ 1:27:30And so that's why again, we're, so we are, we at the chamber are so focused on ensuring, uh, that this review leads to a return of complete tariff free trade to north america. >> thank you. And thank you for your answers. They're most helpful. I yield back. >> I thank you lady gentlelady. Yields back. I now recognize Mr. mann from kansas for five minutes. >> thank you, Mr. chairman. And thank you all for being here today.
▶ 1:27:58I represent the first district of kansas, which is one of the largest ag producing districts in the country. I can wrestle with my friend here from iowa if it's the largest or second largest. But. But the point is we raise a lot of ag products. Um, we and we've got to have markets both domestic and foreign for these ag products also, by the way, have to have a great transportation network to get these products, you know, out of the fields, out of feed yards, um, you know, to the mouths that, that are going to consume them. Um, I appreciate we're having this conversation.
▶ 1:28:26I think we ought to remind everybody, you know, usmca was a 16 year deal and there was a six year review period built in, which is incredibly important because I think too often we enter into these trade deals, there's no review period. And so we look up after a few years and realize we are being taken advantage of. Um, so I'm glad we're having this conversation. I'm glad this review time was, was built in, um, to prompt some, some important conversations.
▶ 1:28:52Many times what happens is these non-tariff trade barriers enter in, as we all know, um, as example, you know, non-gmo, um, corn going into mexico, right? So we have to have an opportunity to do a reset. And that's exactly what we're doing. I think it's healthy. It's good. I think the american farmer is going to benefit greatly in the long term by doing this. Just a handful of quick questions. Um, first of all for you, Mr. lichty.
▶ 1:29:16Um, and I was at dfa a couple weeks ago, had undersecretary for trade luke lindberg um, there, the coldest and best milk in the country. Is that dfa's headquarters if you're ever passing through. I know I've taken the chairman there as well. Um, no doubt about that. But, um, my question for you in your testimony, you share that export demand now accounts for 17% of total milk production. U.S. milk production trends continue to outpace domestic consumption patterns, you know, necessitating exports.
▶ 1:29:46What percent of all U.S. dairy exports go to mexico, and what percent go to canada? And how important are these markets to support our domestic milk production? >> well, first off, congressman, it's great to see you again. I appreciate the chance to be here with the committee today.
▶ 1:30:03I think in chairman thompson's opening comments, he referenced that the combination of mexico and canada represents around 40% of the export value, uh, with mexico being the largest of those two, um, extremely impactful those trading partners that we have and, you know, look forward that they create such a foundation for the growth we see in milk supply, um, that we are able to go access additional markets beyond that, but critically important to maintain that because of the over reliance we have of our milk to those
▶ 1:30:35Consumers in those two countries. Great. >> and similar question for you, uh, Mrs. um, regarding soybeans and soybeans are the top export crop in american agriculture. 2024 255 my data says we exported 68.7 million whole soybeans, soy soybean meal, and soybean oil to foreign markets, accounting for 58% of production. Um, what percent of U.S. exports are purchased by canada and mexico, and how important are these markets to the U.S. soy production?
▶ 1:31:04>> thank you for the question, congressman. Uh, 13% together is what we end up exporting to canada and mexico at a value of 4 billion. >> and how did that how does that compare to other export markets, china and otherwise? >> so china is a $9 billion market. So mexico is our number two very important. >> okay. Um, and then lastly for you, uh, Mr.
▶ 1:31:29Shump, on the on the meat side of things, meat and poultry exports, um, support a broad supply chain, as we all know, whether it be fertilizer and fish bait production that rely on animal byproducts or increased demand for feed crops such as corn and soybeans that go into the, you know, the livestock that that consumes that. And then, of course, is harvested and exported. Can you explain how exports of U.S. meat and poultry products generate economic benefits across the broader north american ag industry? >> yeah, absolutely.
▶ 1:31:58That's a great question. So we export 25% of our pork production, 15% of beef and 15% of poultry production. So a decent amount of what we produce is exported. But a lot of what's exported is not consumed in high levels here in the U.S. so that helps bring carcass bring value back to producers, american farmers, and ranchers who are able to send some of those products that see higher demand elsewhere. It also generates additional revenue and income for our corn and soybean farmers.
▶ 1:32:26Hundreds of millions of dollars, $2.1 billion on the corn side. And to your point on transportation, it supports truckers and transportation networks and ports. Uh, so it supports jobs all across the country. >> right? Well, see, my time is expired, Mr. chairman. Thank you all again for being here. And again, I'm glad that we're doing this review period at this very important time for american agriculture. And I yield back my six seconds. Thank you, Mr. chairman. >> I thank the gentleman for yielding back his six seconds.
▶ 1:32:53I now recognize the gentlelady from ohio, miss brown, for five minutes. >> thank you, Mr. chairman. And thank you to our witnesses for being here today for farmers, producers, workers and communities across the country. Trade policy is not theoretical. It determines whether farmers have stable markets, whether producers can compete on a level playing field, whether workers are protected and whether communities have a real chance to grow.
▶ 1:33:18We know what happens when trade policies fail to protect domestic production, from nafta to lax enforcement of unfair trade policies, to distortion from competitors like china, too many communities experience plant closures, lost industrial capacity and weakened supply chains, including the agricultural, processing, transportation and manufacturing networks that farmers rely on.
▶ 1:33:43And farmers are also harmed when trade policy becomes unpredictable and unstable. When broad tariff actions trigger retaliation, raise input costs, disrupt export markets, and make it harder for producers to plan the future.
▶ 1:33:59Either we support a rule based, enforceable north american trade policy that gives farmers, workers and businesses certainty, or a chaotic, ham handed tariff policy that harms farmers, raises costs for consumers, and gives china and other competitors an opening to capture market share.
▶ 1:34:21The usmca was designed to be different a stronger, fairer and more enforceable north american trade framework that supports farmers and ranchers, protects workers, strengthens domestic industries, and helps communities like cleveland compete in the 21st century economy. So, Mr. puglia, puglia. All right.
▶ 1:34:43Can you share what labor enforcement tools should be strengthened in the usmca review to ensure farmers, american farmers, growers, producers and workers are not undercut by weaker or under enforced labor standards? And how do we make sure that usmca supports domestic agricultural production and food supply chains? Rather than creating incentives for production, processing or investment to ship outside the united states? >> thank you, congressman, for the question.
▶ 1:35:10Um, I'll refer to the independent mexico labor expert board, which was created by congress as part of the usmca implementation act itself. And that board has periodically reported to the us department of labor their assessment of compliance, or lack thereof, with usmca's labor provisions in mexico.
▶ 1:35:31Um, I'll just give you a couple of quick suggestions that the, that that panel has made that, um, that we would concur with, uh, one of their findings is that the number of inspectors, labor inspectors in mexico should be increased. They found that for the population of the workforce in mexico, approximately 60.5 million workers, there should be around 4000 inspectors. There are only 660.
▶ 1:35:55So that is seems an obvious area where mexico could step up its its commitment to compliance with usmca. They also suggest expanding access to trainings for federal and state level labor inspectors on child labor protocols to ensure the guidelines related to identifying, sanctioning, and referring for criminal investigation of child labor violations are followed. Um, and then finally, I think transparency is important.
▶ 1:36:21Uh, the panel suggests collection and publication of information on the number of routine and unannounced inspections and of course, of matters referred for criminal prosecution. Uh, and so I think those and other suggestions made by the panel would all help, um, remove some of the unfair practices taking place in mexico that undercut american production in terms of cost of labor.
▶ 1:36:47>> and briefly, how should congress think about usmca, not just as a trade agreement, but as part of a broader economic and national security strategy to reduce dependance on china, protect farmers and producers, rebuild domestic capacity, and ensure communities like cleveland are not left behind. Again. >> I appreciate the question. Uh, so as I mentioned on the economic side, there's no replacement for usmca.
▶ 1:37:13Our farmers, ranchers, and meat and poultry packers and processors rely on that integrated network and the meat products and livestock trade that happens across our borders, often multiple times. But canada and mexico either have a trade agreements with or are negotiating with china, brazil, the european union. So our competitors and our adversaries, if we were to walk away from usmca, these countries would surely gain more market share at our expense.
▶ 1:37:41And so our ask is that usmca be preserved and continued so that we remain the dominant supplier in canada and mexico, and that we continue to have unfettered access, preferential treatment in those markets compared to those other countries. >> thank you so much. As we review the usmca, we should strive for trade policies that maintain stable markets for farmers and producers, strengthen labor enforcement, build resilient supply chains, and rebuild domestic production rather than hollow it out. And with that, Mr. chairman, I yield back. Thank you.
▶ 1:38:12>> your time has expired. I recognize Mr. fincher for five minutes. >> I just want to thank. >> chairman thompson for holding this hearing today. I think it's very, very important. I want to thank our witnesses for being here today, and I want to thank you for your testimony. It was very impressive. And when you read through it, we understand that usmca remains the gold standard for international trade policy and for one of the largest integrated economic blocs, mexico, canada, us.
▶ 1:38:40Uh, this provides us a roadmap for the most important regional, regional supply chains in the world. And I'm excited. I mean, you know, people can, can criticize or whatever, but to revisit and to reset this trade deal is paramount. I think it's just a great thing that we're doing.
▶ 1:39:01Uh, so, so that being said, you know, one of our areas that makes usmca incredibly strong for our farmers is a facilitation of biotechnology and the sps chapters that prevent non-science based trade barriers. However, as we look for targeted improvements in these chapters, there are opportunities to better align pesticide maximum residue limits with codex standards and further enforce barriers to trade. Biotechnology. Missus Mr.
▶ 1:39:29Bayer could miss bayer sorry, could you quickly explain the importance of usmca, assessing critical inputs for your farm and the benefits of maintaining strong sps biotechnology provisions? >> thank you for the question, congressman.
▶ 1:39:49Um, certainly as if if we can be more consistent among the three trading partners without impeding everyone's regulatory authorities. You know, on the farm, everything we do from the start to finish is highly regulated. And so we rely on experts at epa. Certainly we rely on experts, you know, with the fda for our final products.
▶ 1:40:16And so our our systems are heavily integrated with science. And that doesn't need to be replicated. It doesn't need to be, um, concurrently run in other countries to accept our products and to accept our, our varieties. And so as much as these systems can be efficient, and I think one of the interesting parts about usmca is the commitment to sharing information and transparency. And that's something that we benefit.
▶ 1:40:44>> I agree, I mean, sharing of information. And as long as it's factual, right? I mean, as long as it's research tested, research based. And to me, that is the critical criteria for all three countries that we embrace. And hopefully through the reset and through this review, we can continue to go down that path. You know, mexico is constantly is consistently one of the most important export markets for iowa pork producers, which is why maintaining a fair and rule based trade relationship is so important.
▶ 1:41:12Mexico, uh, is one of the most important markets for the world when it comes to us pork. Recently, we've seen mexico initiate anti-dumping and countervailing duties, ad and cvd, cvd, investigation into U.S. hams and shoulders. While every country has the right to enforce trade laws, these investigations must be based on facts not used for political leverage. Uh, Mr.
▶ 1:41:36Trump, can you discuss why maintaining a fair rule based trade relationship under usmca is critical for american pork producers? >> thank you for that question. And to be clear, we view mexico's investigation into those pork products as spurious. We don't see there being any merit to those claims. And so but and our and our members and the industry has had to undertake extensive process to address mexico's concerns.
▶ 1:42:04Um but in general, maintaining usmca is going to be critical for our pork market access. And we believe that usmca has the consultative mechanisms in place that can address any concerns, and they should be done in those ways, not through this type of an investigation. >> yeah, I agree 100%. Absolutely. And I think 40% of our, our, our export in, in, in the pork industry goes to mexico. I mean, it's very, very significant. That is correct. Yeah.
▶ 1:42:31So, so we got to maintain it, but we also have to work with them to not have these issues come up. Uh, I got 46 seconds left quick. Uh, Mr. lockney, uh, talk about mexico and us dairy. This is an opportunity for us. You know, we've always talked about canada, but us, us and mexico have a great dairy opportunity here. Can you just talk about that very briefly? >> yeah, I would say, uh, it has had a great opportunity. Continues to see, uh, $2.5 billion of dairy exports are going into the mexican market.
▶ 1:43:00And it's one that we want to continue to preserve and also try to offset any type of restrictions that we would have from european trade agreements. When it comes to common cheese names. >> that's exactly right. Thank you so much. Thanks again for your testimony, everyone. And I yield back. >> I thank the gentleman. Yields back. And I recognize the gentlelady from kansas, miss davis, for five minutes. >> thank you, chairman, and thank you for holding this hearing. The united states-mexico-canada agreement, or usmca, is critically important to the state of kansas.
▶ 1:43:30Kansas is two largest export markets are mexico and canada. And across the board, uh x exported kansas goods supported an estimated 55000 jobs in our state. However, as we've heard, farmers are currently being, uh, just just crushed by the administration's, uh, tariff policies and resulting trade war nationally.
▶ 1:43:54Over the last crop year, farm losses have reached $28 billion and farm income is projected to drop even further. The tariffs have also raised costs for everyday people, including on groceries. And in the wake of, um, this chaotic, uh, tariff policy, the united the usmca has provided has provided, uh, a small silver lining for folks.
▶ 1:44:19The agreement has provided businesses and producers with trade certainty and market access. And, you know, amidst this chaotic and, uh, irrational trade policy that we've seen, it's estimated that usmca, mc, lower tariffs have saved american households approximately $700 annually on groceries. Um, you know, I would I was here when we negotiated this. President trump negotiated and signed usmca into law.
▶ 1:44:48I was proud to vote for it. I believe it is a critically important, um, tool and that the joint review process leads to the continuation of the usmca. Uh, miss bayer, I was, uh, I'm going to come to you first, uh, in, in the comment, uh, in public comment that was submitted to us to the american soybean association stated that the industry wouldn't survive, uh, an additional tariff battle with canada and mexico.
▶ 1:45:16And I'm kind of going to follow up on, uh, the ranking member's question to, you know, given that mexico is the second largest importer of american soybeans, um, can you give some insight into how usmca helps to keep input prices lower?
▶ 1:45:35Uh, or conversely, how, uh, how the termination of usmca might exacerbate what is already a volatile and historically expensive input market environment? I mean. >> sure, thank you, congresswoman. Uh, so we're talking both on the expense side and on the, the, um, the profit side.
▶ 1:45:59I think, you know, we can't, we can't out, we're constantly being outpriced by brazil. So our land costs, our machinery costs. Brazil can beat us there at $200 less an acre. They have room for mistakes. We don't we're on the edge. Um, as far as profit goes. So every trade agreement is important, including that with our closest neighbors.
▶ 1:46:28As far as inputs go, um, personally, fertilizer for my soybeans comes out of canada. So it's a direct relationship and is, you know, sort of price sensitive. We've been seeing double digit increases in all of our inputs is, is what's affecting us today.
▶ 1:46:48And so even though individually, each of these inputs between pesticides, fertilizers, seed machinery are significant on their own, it's being compounded right now. And so those pressures are being accelerated. And so positive press for usmca and review is, is really important to our industry. >> thank you. Uh, 200 let's pray. That's significant.
▶ 1:47:16Uh, Mr. harrington, um, I was hoping to come to you next. I certainly appreciate the discussion of integrated supply chains and benefits for american consumers in your written testimony. Uh, and, uh, to follow on another of my colleagues, they took all my questions. Um, but, but actually it gives the opportunity. You mentioned, um, uh, aluminum and the, the increased costs when it comes to canned goods and that sort of thing.
▶ 1:47:44I was, I was hoping you could, uh, kind of expand on that with potash and template. Um, and, and just if you could explain a bit about how that's impacted as well. >> of course. Thank you, congressman. Congressman. Um, yeah, in one of our biggest concerns, um, at the outset, before usmca compliant goods were declared duty free was certainly the tariff on potash.
▶ 1:48:14Uh, I think we've talked about, I think, um, that 80% of the potash we import, we import from canada. Um, and so our farmers who, who faced tariffs on the export side, um the potash piece was, was a huge component of their, of their costs on the input piece. And so they were getting squeezed, as I think ranking member craig well said at the outset. Um, so I think the fact that, um, that's exactly why we have to keep.
▶ 1:48:43So most potash that's usmca compliant now is remains duty free. It has to stay that way. We have to this is and the same pivoting to the aluminum piece and the tin, the tin plate piece. Um, this is a critical component in, uh, ag and food packaging, as I mentioned, uh, it constitutes 40% of the cost of the product in this packaging.
▶ 1:49:06And with canada as a key producer and provider of aluminum at below market prices, in most cases, um, when it's tariff free, um, that, that it's a critical supplier to reduce costs for producers and consumers. >> thank you. Thank you, Mr. chairman. I appreciate the grace there I yield back. >> gentleman lady's time has expired. I now recognize the gentleman from ohio, Mr. taylor, for five minutes.
▶ 1:49:37>> thank you very much, chairman. And thank you. Witnesses more than usual. Number of witnesses. Thank you for your sacrifice and your expertise. It's great to have you with us today. Um, most of my district borders on the ohio river. Agricultural trade has been and will continue to be vital to the farmers in southern ohio. It's my district's primarily agricultural with 11,000 family farms. Uh, canada and mexico continue to be the two largest export markets for our crops.
▶ 1:50:04I anticipate that will continue with the renewal of this agreement. Our neighbors to the north and south have been consistent partners in trade, but we should always remain concerned about what would happen if we didn't have those markets. We've seen time and again that when we lose market share, other companies, other countries jump in and take our place and it's almost impossible to get back. We saw that with brazil and china in 2000. Uh, us soybean sales to china were almost double what brazil sent them. But today it's brazil supplying nearly 70% of china's total soybeans.
▶ 1:50:36Uh, so, miss buyer, hypothetically, where would mexico and canada turn if this vital trade agreement went away? >> uh, thank you for the question, congressman. You know, at the end of the day, what I see when we're visiting customers is that they're looking for the highest quality they can afford. So sometimes it's a race to the bottom.
▶ 1:50:58Um, on, on who's going to supply those beans in the us when it comes to mexico and canada, you know, we have the advantage of our rail system. So thankfully, with this 16 year agreement, you know, that stabilizes some of those, um, those trade routes and we can improve and strengthen our own transportation system. And that's to the benefit of other sectors to. >> thank you, Mr. harrington.
▶ 1:51:25Um, the more diverse our, our market options are, the better situated we will be to negotiate the best usmca, usmca for america. Uh, you have extensive experience up and down the western hemisphere as we think about future trading partners. What countries do you see as most friendly and most likely to be great partners as we go forward? >> thank you for the question, congressman.
▶ 1:51:45Um, we're spending a lot of time focused on argentina right now, um, because of some of the reciprocal opportunities and the market oriented opportunities that, um, the, the market oriented reforms that argentina is, is advancing. Um, we want to further leverage the free trade agreements that we have with, with colombia, with the cafta-dr countries. Um, I think we want to stabilize the relationship with brazil right now. It's, it's an important us trade partner as well.
▶ 1:52:14Um, but I think 12 of our 20 fta partners are in the western hemisphere. Uh, and that, that speaks to the importance, certainly to your question of, of, of why, um, why for us exporters, these markets are important. >> thank you. Mr. trump, you've stated a few times today that any change to the usmca would negatively impact the market for us meat producers.
▶ 1:52:38At the same time, um, producers have many the producers in my district have numerous issues with the current arrangement. Is there really no way the usmca can fairly be improved for american meat producers? >> the meat. So for us, the usmca has again provided that $8 billion worth of trade, $16 billion when you count livestock.
▶ 1:53:01So we think that the improvements to sanitary phytosanitary measures, technical barriers to trade, other provisions in usmca have really helped bolster our trade throughout north america. Um, and we want to see all of that maintained. The administration is using this as a blueprint in other regions of the world. And we appreciate and support that. The one addition we would suggest for usmca has been brought up as well on common terms, common meat names.
▶ 1:53:25Ustr is negotiating this and other markets, and we would like to see that added as a letter to the agreement, because that would protect trade and products like bologna, salami, etc. To our north american partners. >> gotcha. Okay. Well thank you. And just generally to the panel, would is it fair to say that brazil is our our biggest threat to our our participation in global trade agreements and our world of agriculture?
▶ 1:53:50Is there someone else that rivals their attempts to supplant us as suppliers to other countries? Is it fair? Is there is that fair to say or. >> well, I'd say from a dairy perspective, I think the european union and new zealand are also major exporters from a global standpoint. So those would be ones we'd look at from a data perspective. >> okay. On the. >> same on the meat side, european union on pork in particular. Um, brazil definitely on, on the beef front.
▶ 1:54:21>> okay. >> eu on geographic indicators too, as some of the other members have said, uh, I think a real problem because they export those to other trade agreements. >> okay. All right. Well, again, thank you all very much for your time. And I appreciate you being here. I yield back. Chairman. >> thank the gentleman. Gentleman yields back. I recognize the gentleman from illinois, Mr. sorensen, for five minutes. >> thank you, Mr. chairman. Um, thank you to our witnesses for fighting on behalf of america's farm families. Um. Sincerely. Thank you.
▶ 1:54:48Um, I'm proud to live in the hometown of of deere and company. Um, and I hear from farmers all across the country about the incredible uncertainty that exists today, largely caused by an administration that is failing to solve serious issues in the ag sector. I hear from farmers each day about the high cost of diesel fuel that's needed in their green and yellow tractors, all because of an unwanted war in the middle east. They can't take much more of this in 2025.
▶ 1:55:16Trump's tariffs cost illinois nearly $9 billion nationwide, over $133 billion. And that means that these tariffs are now a $1,700 tax on each and every household. The joint economic committee estimates that these costs will increase by 43% this year to $2,500. That's on top of grocery costs, health care costs and insurance costs. I'll say it again.
▶ 1:55:44Today's farmers are being asked to just make do when all they need is certainty. China's always been our largest market for soybeans, but according to recent reports, the united states has lost $14.9 billion in lost exports between march 2025 and february of this year as a result of chinese retaliatory tariffs. That's why the north american market is so important.
▶ 1:56:10Illinois is the top soybean producing state in the country, and number two, in corn production. Ag is in our illinois dna the usmca trade agreement is a vital part of providing the certainty that we need. Mexico is the top importer of american grown corn.
▶ 1:56:31Nearly 35% of all corn grown in illinois goes to mexico, and canada is our top importer of ethanol, purchasing anywhere between 30 and 50% of all american ethanol every year. Canada and mexico combined purchased more than $4 billion worth of american grown soybeans, making it the largest national agricultural export. To say this is essential is the understatement of the year.
▶ 1:57:00As we get closer to the july deadline, I appreciate your willingness to come to the committee, especially. It's cold in here. There's a cold front that's come through. I'm pretty sure. Um, I appreciate your willingness to be here to help us do what's right for our closest neighbors, the hardest working people in america. Uh, missus. Buyer, I'm going to begin with you. Um, you mentioned in your testimony the chinese 10% tariff on U.S. soybeans.
▶ 1:57:27It causes our product to not be as competitive as south american grown beans. Um, without the predictability of usmca. What does this mean for our, for our soybean market? >> uh, thank you for the question, congressman. Since you brought up iron, we run green on my farm and we recently had an autonomous tractor with tillage equipment attached, demoed. That's $1 million deal. Wow.
▶ 1:57:56You know, and so when we're thinking about the types of investments we need to make on the farm versus what we want on the farm versus what we have any chance at affording, you know, these are these are big decisions. And so these long term trade agreements help stabilize those sorts of plans. >> I want to piggyback on what my colleague from kansas, miss davids, had said. How important is it that we bring fertilizer costs down and then we produce fertilizer in america?
▶ 1:58:28>> yeah. Thank you for the attention to that. Um, I think it's interesting to think of both the cost of the fertilizer, the production and the timing. And so the sort of the latest round of, of panic in farm country really highlighted that there's limited production, you know, scarce natural resources. And we have to be really careful at the interconnectedness of sort of the global ag economy. >> I want to open this up to everybody. My time is limited.
▶ 1:58:56If the usmca were not renewed or if it were altered or we lost the zero tariff access, you know, what would this mean for our economy? In your opinions? >> a third of U.S. food and ag exports go to mexico and canada. I think that says it all. If we don't have that duty free access, it could be potentially devastating. >> so you all would agree that it would be devastating to our economy, our economy.
▶ 1:59:24You know, we have to make sure that our trading partners are dealt with fairly. Yes. We have to make sure that we have healthy competition, but our farmers and agribusiness need certainty. Today. I look forward to working with my caucus and with my republican friends to make sure that an extension makes sense for american workers and keeps farmers competitive. Thank you all so much, Mr. chairman, I yield back. >> gentleman's time has expired and now recognize miss dela cruz from texas for five minutes.
▶ 1:59:54>> thank you so much, chairman, and thank you to all the witnesses for being here today. My district sits on the border of mexico and the united states. So the usmca agreement is of high priority for our area, not only to make sure that we include the 1944 water treaty into the usmca agreement, but to make sure that it benefits our local south texas communities.
▶ 2:00:23There's so many, so many things that we could talk about. But I'm going to ask miss bayer, in your testimony, you explained that the united states and canada have an agreement allowing grain to cross the border without reinspection. Um, that same agreement does not exist between the united states and mexico, resulting in higher transportation costs for U.S. exports.
▶ 2:00:53What would be the benefits of aligning the >> reinspection policies across all three countries for transportation of ag commodities by freight rail. >> thank you for the question, congresswoman. Anytime there's reinspection of grain rail cars, it's going to add time and delay and usmca. You know, one of the purposes of it is to discourage arbitrary barriers.
▶ 2:01:22So in general, we'd be looking for, you know, demonstrated need for those sorts of of things. It does establish a working group for cooperation. And I think that's also one of the benefits of this agreement. >> but it establishes a working group. However, there is not an agreement with mexico. So what has been some of the challenges faced by not having an agreement with mexico, but having an agreement with canada?
▶ 2:01:57>> so I'll I'll give an example of the phytosanitary. So mexico has a different standard for the types of foreign material that comes in. And if a rail car needs to be fumigated, it's a two day delay and $70,000. So that's, that's an example of of the real cost. >> so would be an increase in cost. Is that what I'm hearing? Okay. Wonderful.
▶ 2:02:25There is an important issue that is happening in south texas and that is the new world screwworm, which we have found some detections in south texas. Two of the three have been in south texas in my area. Mr. shoop, in your testimony, you highlight the trade imbalances between the united states and mexico with respect specifically to cattle.
▶ 2:02:53Cattle being an important industry in our area. Can you explain how imports from mexico have historically helped supplement the domestic herd? >> yes, thank you for that question. I just want to also reiterate that the new world screwworm is not a food safety issue, that meat products remain safe to eat. And we welcome the work that's being done to address the issue.
▶ 2:03:19On behalf of the industry, our top priority is to the health of the herd here in the in the us. And that's and that's number one. So mexico typically does ship 1.2 to 1.3 million head of cattle to the us per year. Obviously, that has not been occurring because the border has been closed the last year due to screwworm. But most of that cattle comes and goes into feedlots and feeding operations to support american farmers and ranchers, and that helps make sure that those feedlots can operate at full capacity.
▶ 2:03:49And so canada is the only other live cattle supplier to the us that is logistically viable. So without mexico, it's been a really big hit to the industry. >> and that being said, I only have a couple more seconds.
▶ 2:04:05Here is usda has taken a number of steps to prepare for the new world screwworm outbreak in the united states, including a playbook beginning construction of a domestic sterile fly production in my area mission, texas, and increasing sterile fly production in mexico. What are you hearing from your members about the threat imposed by the new world screwworm? >> well, we are supportive of those efforts to address. Screwworm.
▶ 2:04:34So the sterile fly production, several fly dispersal as well as other innovations that are currently underway. And our members are looking forward to working with you, with usda, to ensure that we can eradicate new world screwworm. >> thank you, I yield back. >> I thank the gentlelady. Yields back. I recognize Mr. vindman from virginia for five minutes. >> thank you, Mr. chairman. Ranking member. So, Mr.
▶ 2:04:58Trump, I'm highly concerned, as many of my colleagues are, with the impact of the new world. Screwworm now that multiple cases have been confirmed here in the united states, two states, is that correct? Correct. And so can you just how big is the beef cattle industry in the united states? >> uh, it's very significant. So we have, uh, so we represent the meat packers and processors of the industry. And so, uh, the cattle herd, rough order of magnitude. Sure.
▶ 2:05:28It's the lowest it's been in 75 years. So I think around 80 something million head. >> and so was that how many billion dollars is that industry? Any sense? >> the total meat and poultry is $912 billion. So. >> okay. And, um, how does the the spread of screwworm affect our relationship with canada and mexico when it comes to beef exports?
▶ 2:05:54>> uh, that's a really critical point to, to raise there because there should not be any impact on our meat exports. The world organization for animal health states that there should be no impact on meat trade. Uh, livestock trade is different. So there will likely be impacts on live cattle exports. And those will be dealt with between usda and the different competent authorities. But there should be no impact on meat exports or beef exports. >> and what about, um the screwworm? Um how do you anticipate it will, in fact, it'll impact beef prices there.
▶ 2:06:27>> so just to reiterate, like I said, the cattle herd is the lowest it's been in 75 years. And so there are a lot of factors that impact prices, um, tight supplies and strong record demand. Here are one of those factors. And so rebuilding the herd is going to be something that is critical to inject additional supplies into the market. Having screwworm, uh, doesn't aid in that process, but that you don't. >> have, you don't have an estimate of, of potential impact on the, on the price of beef.
▶ 2:06:55>> not an exact figure because a lot of different factors impact. >> you think it will increase the price of beef. >> when you have tighter supplies and strong demand, there's the potential that you might see a price increase, but I can't say specifically that it would be tied. It's too early to tell the impacts of screwworm. >> you have any sense of how much was spent by the us government for us aid programs or aphis on on monitoring screwworm so it didn't get to the united states.
▶ 2:07:21>> I don't have a sense of how much was spent on it, but I know that we as the meat industry, support aphis having the resources to respond to new world screwworm also, from a trade perspective, since they will be negotiating with our trading partners. >> okay. And so you would consider restoring, um, fired staff to aphis as a, as a strong step towards eradicating screwworms. >> the meat industry supports a fully funding usda and all of the important critical functions, including veterinary services, inspection services, and the like.
▶ 2:07:53>> and, um, what can congress do to ensure that the screwworm outbreak can be resolved as quickly as possible? >> I'm sorry, did you say congress, sir? Congress. Congress. Uh, I think working closely with usda and ensuring that they have the resources necessary to be able to address this concern would be wonderful for the industry.
▶ 2:08:12>> I'll just say, from my perspective, um, the cut to programs like usaid and aphis, um, by doge and this administration, um, seems penny wise and pound foolish at this point when, uh, we had a, um, screwworms were eradicated in 1966 and now 60 years later, they're back because we cut a few million dollars from, uh, even ten tens of millions of dollars from a program, um, that affects a, a $12 billion
▶ 2:08:44Industry. So, um, I think the sooner we can restore that funding, regardless of what agency or department it falls under is, is, uh, better for our producers. And, uh, with that, I yield back. >> gentleman yields back. Uh, now recognize the gentleman from wisconsin, Mr. weed, for five minutes. >> thank you, Mr. chairman. >> what an. >> opportune time it is to have this hearing, especially during national dairy month.
▶ 2:09:11I think the usmca has been a great opportunity for our not only our dairy farmers, but also the producers in northeastern wisconsin and of course, across our great country. It has allowed our market in mexico to continue to grow and easily cement ourselves as their biggest market. However, canada continues to undercut the wisconsin dairy industry. They have utterly failed to implement what they said and the review process during that.
▶ 2:09:43It is of the utmost importance that that's addressed. This is why I led a letter to ambassador greer last december with 73 of my colleagues. It was a bipartisan letter, 20 of which are on this great committee, including you, Mr. chairman, asking the administration to prioritize this exact issue with canada. I thank all my colleagues who signed on to that letter for doing so, and I would like to submit it for the record here today.
▶ 2:10:09Additionally, last month I hosted a roundtable with farmers and cheesemakers in my district on this exact topic. I want to thank today's witnesses to allow all of us to hear more about the deal's impacts, and what else we in congress can do to ensure that canada and mexico follow through on their commitments to provide more certainty for our producers? Let's start with you, Mr. liechti. I might end with you. We're going to talk dairy.
▶ 2:10:33Um, I was proud to co-lead the bipartisan letter that was signed by 74 members of congress to ambassador greer last december, um, urging the administration to address canada in the joint review, wisconsin's home to world class cheesemakers who depend on fair market conditions, both home and abroad. Your testimony shows that the industrial cheese quota canada committed to under the usmca saw only 64% utilization.
▶ 2:11:02Um, that's over five years, correct. So which obviously is undercutting our cheesemakers access to the market. So my question is, what does it mean for cheesemakers ability to compete if these issues go unresolved through a joint review? Yes. >> thank you, congressman. And first off, I agree with you. June is a great month. So I appreciate your comment there as it relates to, uh, specifically cheese and the cheese makers from the united states.
▶ 2:11:29You know, we were given the opportunity to fill a certain volume of quota, and we've not been able to do so as you've referenced, I think continuing to find ways to either enforce better use of these would be great, or to even open up the access to retailers, food service providers or the like, beyond just industrial ingredient manufacturers or ways for us to be able to again, use what we were able to get and allow the canadian, uh, companies to live up to the commitments made. >> how can we hold the canada's feet to the fire better during this review? So specifically?
▶ 2:12:00>> yeah. So I would say being able to provide, uh, greater, steeper penalties for those that would use the, the quota, the unfilled quota would be one avenue to use. >> let's talk about mexico. I think there's a lot of wins there. Can you share any success stories with either dfa or specific farmers would be great, um, that they've had with mexico over the last six years with, with the implementation of usmca, which has been a big win. Um, can you tie any of those, like I said, back to farmers?
▶ 2:12:32>> yeah. So $2.5 billion worth of exports have gone to the mexican marketplace. It is the largest export market for us dairy. So it does have a very direct impact on the milk check that dairy farmers receive each and every month. Um, and I would say it's not just one state. It's many states around this country that have benefited from our exports into the mexican market. >> so clearly we've talked about some some great wins with mexico. Um.
▶ 2:12:59Dairy farmers still have concerns. What can we do here in congress to address what concerns are those? And what can we do here in congress to address those concerns? >> uh, we need to preserve the market access that we are able to get through nafta originally and then double down from a usmca standpoint.
▶ 2:13:19I think over the last few years, we've seen some movements by the european union to bring in some restrictive types of policies, including common cheese names, and I would say continuing to be able to provide, um, action from a us government standpoint to preserve, again, what we were able to get, including the common, the use of common names. >> I'm a little biased. I like dairy a lot. So sorry if I wasn't able to ask any questions of all of you great, great people.
▶ 2:13:48Thank you to all of you and appreciate your time here today I yield back. >> thank the gentleman. Gentleman yields back. I recognize the gentleman from california, Mr. carbajal, for five minutes. >> thank you very much, Mr. chairman. Uh, and I want to thank all the witnesses for taking time out of your busy schedules to be here with us today. Mr. puglia, it is good to see you again.
▶ 2:14:09As you know very well, specialty crops account for a significant portion of agriculture grown in my district on the central coast, which is also known as paradise on earth. Specialty crops, just like other sectors, depend and thrive on healthy export markets. Strong and predictable trade relationships provide the certainty growers need to make long term investments and support throughout the agriculture supply chain.
▶ 2:14:37However, got back into office 2.0. Our export export market and trade relationships with our neighbors have looked anything but healthy or predictable. Canada has long been an important export destination for U.S. agricultural products and a key market for california growers. Mr. puglia, why is it important for your industry that the united states normalize trade relations with key partners like canada?
▶ 2:15:08>> thank you, congressman, for the question. Good to see you too. Um, I referenced in my earlier comments that canada and mexico represent the first and second in terms of rank destinations for exported fresh produce from the united states. For california specifically, canada is far and away the number one export destination for our products.
▶ 2:15:29I think the one way to capture, uh, sort of the essence of your question is to reflect back on both the successes of usmca and creating that, um, highly predictable, uh, stream of commerce between the three countries. But also what happens when there's disruption. Canada, as you may recall, um, laid down retaliatory tariffs in 2025.
▶ 2:15:52Uh, it's the order of 25% in response to the tariffs that we imposed on some canadian products. And those retaliatory tariffs went among other products against fruit such as all citrus peaches, other stone fruit melons, some vegetables, tomatoes, green beans, pecans on the tree nut side, and that resulted in loss of market, um, quite immediately.
▶ 2:16:16If you look at the year over year data from 2024 to 2025, while those retaliatory retaliatory tariffs were in effect for oranges, for example, the us lost 34% of its sales to canada, egypt and morocco picked up the balance. If you look at mandarins, united states lost 28% of its market. Canada, morocco and peru picked up the balance. And for peaches, the us lost 18% of its market during that time period. Year over year, chile and mexico picked up the.
▶ 2:16:45The market opportunity. And what we see, as we saw with china, is that when we lose a market for california products or western us products in the produce sector, and true for others at this table, it's really hard to get that market back. Uh, you see others come in and displace us and it's very hard to recreate that dynamic.
▶ 2:17:05So I think that it's very, very important that we see usmca renewed with some important changes so that we don't go back into the situation where these two most reliable trading partners feel compelled from time to time to slap retaliatory tariffs on us ag products. >> thank you. Uh, Mr.
▶ 2:17:25Puglia, you mentioned in your testimony that while our reliance on imported produce has grown, so has our need for strengthening food safety compliance over foreign produce. Can you give us 1 or 2 specific examples of how imported food safety oversight and enforcement should be improved, and how should the united states use the usmca process to secure that? >> again, thank you for the question.
▶ 2:17:53Um, I mentioned earlier that in 2023, fda conducted 11,000 domestic inspections on food safety grounds. Only 1500 of foreign facilities, foreign growers. Uh, we don't need to see those numbers rebalanced when you consider the fact that so much of our produce is imported from abroad, 60% of our fruit, 40% of our vegetables, and the lion's share of that from mexico.
▶ 2:18:17So we specifically, in our comments to ambassador greer, call for usda to stand up and fda to stand up a more robust on farm inspection verification system in mexican operations. We don't have the same level of concern with respect to canada, but we do. With respect to mexico, there have been cases that showed dramatically different approaches by the federal government when it comes to a domestic producer with a food safety outbreak versus a mexican producer.
▶ 2:18:46And without going into those details, it is wildly different. And so there's an opportunity to use the mc renewal process to bring mexico further along so that we have a more equalized approach to food safety, which of course, benefits the consumers we serve. >> thank you so much. Uh, I'm out of time, Mr. chair. I yield back. >> uh, gentleman's time has expired. Now, recognize the gentleman from pennsylvania, Mr. rob bresnahan. Thank you. >> thank you, Mr.
▶ 2:19:13Chairman, ranking member, and thank you to all the witnesses for being here this morning. The usmca provides the market access that our farmers, ranchers and producers depend on every day. Canada and mexico are among our largest agricultural trading partners, and reliable access to those markets help support farm income, sustain rural jobs, and keep american agriculture competitive. But when I talk with farmers across northeastern pennsylvania about trade, one word comes up time and time again, and that's certainty.
▶ 2:19:43Farming is a long term business. Producers make decisions months and often years in advance about what to plant, what equipment to purchase, and how to invest in their operations. That is why certainty around surrounding the usmca review process is so vital. It gives farmers the confidence that they need to plan ahead, manage risk and continue investing in the future of their farms and their businesses.
▶ 2:20:07When trade relationships are predictable, farmers can focus on growing their operations rather than worrying about disruptions to the markets they rely on. A clear and transparent review process helps provide the stability producers need to succeed, compete and continue feeding our country and the world. So my first question is for Mr. harrington.
▶ 2:20:25Uh, could you provide some examples of policies that have disrupted the agreements intended balance and share any recommendations for the negotiators ahead of the joint review that is scheduled this summer? >> thank you, congressman, appreciate the question. Um, the U.S. chamber is I think a few of, you know, has been very focused on the issue of compliance and enforcement in this agreement.
▶ 2:20:51Uh, each of the three countries has work to do in this regard. Uh, we are very focused, um, starting starting with mexico. Uh, I talked specifically in the ag space about, um, biotechnological, uh, approvals. And that goes for the broader, uh, health space as well. Approvals in, uh, in mexico's agency called cofepris. Um, certainly there's challenges in mexico and energy which affect our companies.
▶ 2:21:19There are challenges, uh, in government procurement and in canada. We've talked about certainly the ag specific and the dairy, uh, sector, uh, the impediment there, uh, we've talked about, we have not talked about some of the real, uh, digital trade challenges that canada is posing. And then obviously here in terms of, uh, couldn't agree more with you on certainty, on the, on the theme of certainty.
▶ 2:21:43And we need duty free tariff duty, duty free trade back in usmca to restore that certainty you're talking about for producers, uh, growers, uh, and consumers. >> uh, I appreciate the, the term of certainty today because that's one thing we hear time and time again is knowing where the goalposts are and knowing how to roll the boat towards that same common goal. When you mentioned, uh, mexican energy, um, what are some of the ideas or shortfalls?
▶ 2:22:13Is it all of d, all of the above relevant to energy? Is it generation? Is it transmission? Where do you, where do you see the biggest, uh, impotence in, in actually getting more electrons on the grid? >> yeah, it's a great, it's a great question because it impacts so many of our companies working in mexico. The main issue is, um, is challenging mexico's, uh, attempts to tilt the playing field in, in favor of state owned actors.
▶ 2:22:40So you have pemex, you have cfe, the electricity provider, uh, which are, um, have put us providers to the back of the line. So that's the first, that's the first area is, is, is leveling the playing field. We at the chamber have been clear that, um, that ustr should bring a case. We've brought this up, including in the last administration. We've made the case to the to this this administration to bring a dispute resolution case.
▶ 2:23:06I'm I'm more optimistic than I've been that this review process, because of the 53 specific areas that have been put on the table, that it's that these are going to be addressed because mexico is committed to us. Cr to address them as part of the review. We'll see, we'll see. >> I appreciate it. Uh, for Mr. puglia, can you elaborate on the challenges us specialty crop growers are facing from mexican competition?
▶ 2:23:30And please provide any recommendations that congress could be taking to help offset those concerns and how they could be addressed? >> thank you for the question. Um, I think there there are two different sides of this coin. One is that the integrated nature of the fresh produce industry between the three countries, and that includes mexico. Many of my members produce their products in both the united states and mexico for seasonality reasons, um, being a large share of it. Some of it is cost of production.
▶ 2:24:00California, where most of my members are, is very high cost of production state. Um, but having said that, the, the linkages between the countries work pretty well where we have called for, um, changes in usmca that could help american producers fresh produce vis a vis mexican producers, as mentioned earlier, are in the areas of labor standards, enforcement, compliance with usmca, um, requirements of, of mexico to, to make good on its commitments in the labor enforcement arena.
▶ 2:24:30We've also suggested new provisions to upgrade mexico's performance on food safety. Uh, particularly fda needs to be more aggressive in, in performing audits and food safety inspections on site, especially after an outbreak has been traced back to either a region or a specific farm in mexico, just as they do with domestic producers in the united states. So I think those would be the two areas where we would see the most opportunity. >> appreciate the testimony. I yield, Mr. chairman. >> gentleman's time has expired, and I recognize the gentleman from new york, Mr. mannion.
▶ 2:25:01>> thank you, Mr. chairman. Thank you to our witnesses. Um, Mr. lichty, I'm going to focus my questions towards you, and I certainly want to look at canada's dairy tariff rate quota problem, not just as a farm income issue, but also as a manufacturing and jobs issue. And I know that you made reference to this in your opening statement and your answers to my colleague, the congressman from wisconsin here. So in upstate new york, we are the number one producer of yogurt and cottage cheese.
▶ 2:25:30Um, we have major dairy organizations, uh, hood and burn, um, cayuga milk, but also chobani. They built major yogurt manufacturing facilities because in upstate new york, we have the milk supply, we have the workforce, and we have the promise of market access under usmca.
▶ 2:25:53So if canada did fully honor its yogurt truck commitments, what would that mean for manufacturing jobs and the investment decisions companies are making right now in places like upstate new york? >> uh, thank you. >> for the question, congressman.
▶ 2:26:13Uh, as you're probably aware, the us dairy industry has invested billions of dollars in the most recent years in manufacturing to process milk from dairy farms into high quality products, including the yogurt, cottage cheese, and the like that you referenced. If we're able to fulfill the quota rates that have been given as a part of the agreement, that's more demand.
▶ 2:26:34With more demand, it creates more opportunity to fill capacity, not just to support the jobs in those facilities, but it also provides more milk that farmers can sell to those facilities, uh, especially the ones that you referenced in the state of new york. >> and, um, the undercutting of these quotas. You had mentioned in a previous response stiffer penalties. What would those stiffer penalties look like? And would it require updates in usmca?
▶ 2:27:02>> I think in terms of the penalties, we're just looking for the fuller use of the volumes that were granted as a part of the agreement. And from our standpoint, just finding mechanisms to be able to get that full use of those volumes. >> gotcha. Thank you, I appreciate that. Um, so from what you've seen, our manufacturers having to hold back because of, uh, you know, these quotas not being met. >> I would say that's unmet demand that we from the united states aren't able to meet.
▶ 2:27:30Um, we are able to go find other markets when necessary. But again, from the proximity of the market, it just makes logistical sense for us to be able to work with trading partners that are in canada that are desiring U.S. dairy products. >> thank you for that. I appreciate that, and we've heard from this administration that they may consider bilateral approach to the usmca review.
▶ 2:27:55Mexico is obviously a critical dairy export market, but addressing canada's dairy trq issues is also essential if we're serious about growing the dairy manufacturing industry and jobs, like you had said.
▶ 2:28:09So if we secure a strong agreement with mexico but leave canada's dairy, uh, trq problems unresolved, what impact would that have on our goal of increasing dairy manufacturing and the jobs that come with it in places like upstate new york? >> if you look at the combination of mexico and canada, they are two of the most important and impactful trading partners that we have from a united states dairy perspective.
▶ 2:28:38Yes, we would love to continue to maintain but strengthen the relationship we have with mexico. Yet if we leave the challenges unresolved with canada, that's just unmet demand and lost opportunity for U.S. dairy farmers and U.S. employees of dairy manufacturing. >> thank you. Mr. thank you, Mr. chairman. I yield back. >> gentleman yields back. Now recognize the gentlelady from illinois, Mrs. miller. >> thank you, Mr. chairman, for holding this important hearing. And, Mrs.
▶ 2:29:06Byer, I'm sure you know that illinois leads the country in soybean production. In 2025, illinois harvested more than 633 million bushels of soybeans, which is more than what some countries produce. In my district alone, there are over 3 million acres of farmland dedicated to soy production.
▶ 2:29:31I know how important the usmca is to soy exports, with canada and mexico buying roughly $4 billion in U.S. soy products, which is why I'm very grateful to president trump's leadership in getting that historic trade deal finalized in his first term. Mrs.
▶ 2:29:51Bayer, you mentioned in your written testimony that freight rail is key to the success of the usmca, specifically as it relates to moving our agricultural products into canada and mexico. Can you expand on that and talk about how improved rail trucking and port networks can better facilitate agricultural trade across our hemisphere? >> yes. Thank you for the question, congresswoman.
▶ 2:30:18Our transportation system is really our advantage when it comes to moving grain. And in addition to soybean, you're a big corn state too. And, um, there's nowhere to hide with the usmca. You know, we're covering both crops. And so it's, it's vitally important that we keep these systems strong and moving. And we always say that's how we move the pile. We got to move the pile.
▶ 2:30:47>> um, how can we improve rail trucking and port networks? >> so something that we've discussed a little today is to reduce the amount of re-inspections happening at the mexican border. That just adds cost and delay in our opinion. >> okay. Thank you. And I yield back. >> five minutes. >> thank you, Mr. chairman.
▶ 2:31:14And thank you to all of the witnesses that my seat up here. Thank you to all the witnesses for your time and and being here today and your presence here today. Uh, look, I represent, uh, state of alabama, the second congressional district of alabama, which is in the southernmost half of the state. And so, uh, we have a lot of farmers there. And for the farmers and workers and families I represent in alabama, trade policy is, is not a, uh, an abstract political issue.
▶ 2:31:40It directly affects, uh, like in many of your communities, uh, what producers earn for their crops, their livestock, uh, what businesses can invest in and what families pay at the grocery store as a member of both the ag committee as well as transportation and infrastructure committee, I see how trade relationships affect alabama's agricultural and manufacturing sectors, including our auto industry, supply chains and the jobs that depend on moving goods across north america. Usmca has delivered benefits for alabama. Uh, those benefits.
▶ 2:32:07But those benefits depend on something every farmer and business owner values. And that is certainty. Uh, producers need stable markets. Employers need a reliable workforce, family need affordable families need affordable food. And yet many are facing uncertainty from trade disputes and tariff threats to h2a labor challenges and concerns about the spread of new world screwworm that we've discussed here today at length. Uh, today's discussion is about more than just trade volumes and economic statistics.
▶ 2:32:36It is about whether we are creating a stable environment that allows american agriculture, manufacturing, and rural communities to plan, invest and compete with confidence and certainty. Over the last year alone, producers have faced volatile markets, rising input costs, labor shortages, animal disease threats, trade uncertainty and severe weather. Farmers make business decisions months and sometimes years in advance. Yet many feel that they are operating in an environment where the rules keep changing and keep changing on short notice.
▶ 2:33:04And so, miss beyer, my first question is to you as I look over my my pictures head here. John mannion. Um, the your testimony highlights that usmca works because it provides certainty, clear rules and long term confidence for both buyers and sellers. Unfortunately, many of our soybean producers do not see that same certainty in other export markets. Uh, when foreign buyers shift their purchases to competitors and invest in new supply chains, those decisions can become permanent.
▶ 2:33:33Um, from the perspective of alabama soybean farmers, how concerned should we be that market share loss during periods of trade uncertainty may never come back? Uh, and what policies are needed to restore confidence in the U.S. as a reliable long term trading partner? >> thank you for the question, congressman. I think, you know, following the the china trade war, we have definitely seen investments being made in our in in other parts of the world with our competitors and their ability to deliver beans to ports.
▶ 2:34:03I think the strength of the U.S. soy economy, though, comes in part to renewable fuels. And we haven't talked too much about that today too. But, um, with both canada and, and mexico participating in those sorts of activities, there's opportunity there. There's certainly opportunity that we're securing domestically to promote those, those industries and having access to crush facilities and fuel refineries and those sorts of things are really important for local markets.
▶ 2:34:34>> understood. The do you know, right off, and this is not meant to put you on the spot, but if you don't, we'll take a response on the record. But how much was lost in the soybean industry with the tariff war with china when exports dried up? >> that's a good question. I, I won't be able to answer that. >> okay. But is it is it fair to assume, though, that we're talking billions of dollars? Is that a fair assumption? >> I don't know, I billion is a big number. I'm not sure. >> yeah. I um I agree, um, it's it's a big number.
▶ 2:35:02And unfortunately I think um the billions would not be in the low billions. Um, when we get that number and I look forward to getting that data point. The point I'm trying to make is that the tariffs, I don't care who you voted for for president. I don't care who you voted for for congress. I don't care if you identify as a lifelong democrat or a lifelong republican. It does not matter to me. Nobody signed up for what we went through with the tariffs. And I know our agriculture committee did not sign up for that either. It was not good for alabama. It was not good for district two.
▶ 2:35:31It was not good for america. It was certainly not good for the agricultural industry, which provides so much to this nation, so much to this nation. Yet they had to take it on the chin to the tune of billions, if not hundreds of billions of dollars. It was not right, not right, and something that we collectively, as members of congress who sit here on this committee and across congress and say that we support farmers, we need to stand up and address the harm that was done, regardless of political party.
▶ 2:36:01And we need to be serious about putting forth a package, um, that provides some relief, at least some of the relief, uh, to american agriculture industry. Uh, that is something that I would hope that we can have all of you guys support on. And certainly something that I'm going to continue to work towards.
▶ 2:36:17Um, and obviously making sure that the market share, especially in like the soybean markets and peanut markets, cotton markets and other, uh, crop markets that we think through this, through a lens of how do we get that market share back from investments that other trading partners have now made across the world? Thank you. And I yield back, Mr. chairman. >> I thank the gentleman. Gentleman yield back.
▶ 2:36:40I do want to just correct the record on the new world screwworm it's not here because of usda budget cuts. Uh, usda aphis have broad authority under the animal health protection act to use appropriated dollars, contingency funding, and emergency resources to respond to animal health threats. And usda has used that authority at scale for the past 18 months. Um, for the new world screwworm alone.
▶ 2:37:06Through this authority, aphis has received roughly $1.3 billion in emergency funding and is already obligated more than 1 billion to mount one of the largest animal health responses in, uh, in history. And so, uh, and farm bill 1.0 actually invested almost $2 billion over, over ten years. So, uh, congress is doing its job of providing the needed, uh, vitally needed resources.
▶ 2:37:34Um, I'm going to, I don't think Mr. I'm going to recognize, um, uh, Mr. uh, messmer for five minutes, I think. Mr. harris, Mr. harris, you need additional time or are you ready? I'm ready if you. Okay. Well, um, looking over my list here. Well, I'm still going to recognize Mr. messmer for five minutes. >> uh, thank you, Mr.
▶ 2:38:00Chairman, and thank you, witnesses, for being here today, uh, with most of indiana's 8000 melon and pumpkin acres farmed in my district. My growers are sensitive to price distortion from imported goods. Since 2001, specialty crops imported from mexico have grown by more than 550%. Unfortunately, mexico's harvest window overlaps or even precedes indiana's.
▶ 2:38:24As a result, hoosier producers are forced to compete with mexican goods sold at prices that american farmers cannot reach under existing labor laws and input costs. Uh. Mr. sorry if I butchered that. Uh, given your experience advocating for fresh produce growers, how important would you say that the usmca protect american markets from being saturated with cheap foreign specialty crops, especially during peak domestic harvests? >> thank you.
▶ 2:38:54Congressman, you were close. It's a lasagna, right? Jesus. I'll make everybody italians before we're done here. Um, very important. But as I, I, I may have, uh, said earlier to congressman scott in our back and forth, um, I have the, uh, the burden of representing 300 different crops that fall within a specialty crop category. Much of what we have to address is very situational crop by crop.
▶ 2:39:20Some crops have advantages, um, in the marketplace where other crops would have a disadvantage. There are seasonal considerations. Et cetera. Et cetera. To your point though, um, I think it's very important to recognize that usmca provides a level of, um, enforced certainty in our trade relationships and our markets with the proviso that for any of those 300 plus different specialty crop interests, there's, there are opportunities to use section
▶ 2:39:52301 or countervailing duty and anti-dumping cases to address specific alleged harms. Case in point is the tomato suspension agreement I mentioned earlier, which dates back to the 1990s. Uh, the us found that mexico had been was illegally dumping tomatoes into the us market.
▶ 2:40:09Uh, but the by agreement of the industry suspended the, the, the penalties under the, the, the, the finding that suspension agreement was terminated by the administration last year, resulting in a 17% tariff on mexican tomatoes. And so I think that fact finding quasi judicial, um, process is it's a little painful, but it does yield results that are specific to the circumstance of the crop.
▶ 2:40:41Among those 300, the regions that are affected differently. I'm very, very aware. I spent a lot of time talking to, to my counterpart, uh, who heads the florida fruit and vegetable association, mike joyner. His members are facing a different situation than mine across many of our shared commodities.
▶ 2:40:57And so I think that that's why it's really important that we that we focus on those tools that are available to industry, uh, to be able to, to go to ustr, go to department of commerce, go to the international trade commission and prove a case. Uh, it's not easy to do, but it can be done. >> I think the broccoli growers in my district have felt the same challenges from mexican product as well. So appreciate that. Um, indiana also has a vibrant hardwood industry.
▶ 2:41:23In fact, the hoosier state ranks first in the nation in hardwood veneer manufacturing and second in production of wood cabinets and countertops. In 2024, canada alone represented nearly half the demand for hoosier produced wood veneer. And that same year, canada and mexico accounted for a quarter of indiana lumber exports. Clearly, the usmca must be preserved.
▶ 2:41:44Uh, but, miss sullivan, in your testimony, you described a different issue that is undermining us hardwoods against the backdrop of increasing mill closures. How serious is the threat of tariff free russian plywood to the american hardwood industry? Question mark. >> mike, first, uh, thank you for the question, congressman. Um, honestly, it is substantial.
▶ 2:42:11Russia exports logs to china, where they're peeled into veneers and shipped to vietnam. They're then formed into plywood, which enters the us market effectively tariff free despite a 50% tariff on direct russian plywood imports in 2024, nearly $360 million in birch plywood entered from vietnam and indonesia, despite neither country having native birch trees. Uh vietnamese plywood imports surged 52% in that single year.
▶ 2:42:39Uh, the department of commerce did make an affirmative circumvention determination in july of 2023. But enforcement has proven really difficult to sustain and imports have surged. Again, it is a significant factor for the hardwoods industry and for hardwoods growers, and we hope that congress continues to focus on its on on implementing its its export controls. >> thank you. I would agree with those efforts and protecting those, uh, this vulnerable industry as a priority of mine.
▶ 2:43:09So thank you and I yield back. >> thank you. Gentlemen. Gentleman's time has expired. Now, recognize Mr. davis from north carolina for five minutes. >> thank you so much, Mr. chair. To the ranking member and to each witness. >> who's here today, I have the honor of representing eastern north carolina, where agriculture is the backbone of our economy. I would like to direct my first question to Mr. harrington.
▶ 2:43:37In eastern north carolina, our farmers tell me that it's been hard not knowing what the rules will be from one season to the next. A farmer, financing equipment, land and inputs is making multiple year bets.
▶ 2:43:56If this joint review ends in anything short of a clean long term renewal, such as a non-binding bilateral side deals, what does that do to the ability of farmers and agribusinesses to plan, borrow and invest? >> thank you so much for the question, congressman.
▶ 2:44:18Um, you're really speaking to, I think one of the one of the, the critical themes we're focused on today, which is certainty, your farmers, your growers in eastern north carolina need that certainty. This is a certainty that that usmca certainly has supplied and the certainty that 30 years of duty free trade in north america has supplied. They've been able to rely on that. They've been able to invest in that.
▶ 2:44:44Um, and they've been able to produce goods at a very competitive scale and cost for consumers nationwide. Um, so that is absolutely, and we want to see, uh, unequivocally 16 more years of, of usmca renewed so that exactly your constituents, your, your agricultural and food producers in eastern north carolina can ensure that they have that certainty to be able to continue to invest. >> and thank you, Mr. trump.
▶ 2:45:16North carolina is the second largest hog producing state in the country, and a huge share of those hogs are raised in and around my district. Uh, mexico is the number one market for us pork over $2.9 billion this past year.
▶ 2:45:30Walk me through, if you would, what happens to hog producers and processing jobs in a state like mine if usmca lapses or mexico retaliates, how quickly would competitors like the eu, which already has agreements with mexico and canada, backfill our share? >> yeah, thank you for that question. It would have a devastating impact.
▶ 2:45:57So as you said, mexico is our top market for pork exports. And that's not just those high value muscle cuts that we send, but it's a variety of meat products. And given how china has been acting over the last several years as well, they're not the good faith trading partner that mexico is often. And so that is a key market for a lot of those products that don't have strong consumer demand here, but they find strong consumer demand and prices in mexico.
▶ 2:46:22That then returns revenue back to hog farmers and to the pork industry. And so that's why maintaining it is critical. To your point, if we don't, the eu and other countries that have agreements with mexico will take our market share that we have earned, that our farmers and ranchers have earned over decades. >> Mr. puglia.
▶ 2:46:43Produce grown in mexico continues to impact us fruit and vegetable growers because of a cost of production gap. Our farmers cannot close. Um. Our growers meet some of the strictest food safety, labor and environmental standards in the world.
▶ 2:47:05Um, food safety should be a paramount consideration with our trading partners in this review. How do we ensure imported produce is held to the same food safety and inspection standards american growers must meet. So the playing field isn't tilted against the people that are just trying to do it right. >> thank you. >> congressman, for that question.
▶ 2:47:34Um, the fda has increased its its oversight and regulation in the fresh produce industry domestically. They've not had the same level of increased activity with respect to foreign producers. Uh, we have examples of foreign producers of a fresh produce commodity where an outbreak was traced back. And to be candid, very little was done to restrict ongoing operations from that producer and continue to ship product into the united states.
▶ 2:48:03Similar producer, same product in the united states outbreak traced back. And they've gone through enormous fda oversight, auditing, testing, change practices. Uh, in in this specific case, I'm thinking of loss of market that has been permanent. When we have a foodborne illness outbreak in the produce industry, for example. Uh, well, I'm not going to name a commodity, but for any of our crops that tanks consumer demand for a period of time, no matter where it came from and no matter who produced it.
▶ 2:48:31And so an american grower of any fresh, fresh produce product, um, is going to suffer economically when a bad actor on either side of the border fails to perform to the food safety standards that we expect in the united states.
▶ 2:48:46So we would hope that the administration and congress would put a thumb on this issue in renewal of the usmca to require mexico to perform to a higher level with us fda's oversight, including in-field inspections in mexico. >> thank you, I yield back. >> gentleman's time has expired. Now, recognize Mr. harris for five minutes. >> thank you, Mr.
▶ 2:49:10Chairman, and thanks to all of you on the panel for being here today and for your perseverance as a lot of committee meetings going on, and I know, been a whole lot of ins and outs. Um, I had the privilege of reading your testimonies, uh, coming into this today. And, and since the usmca took effect in 2020, it has helped provide stability and predictability for the america's hardworking farmers and ranchers. And while this agreement's been a significant benefit to U.S.
▶ 2:49:36Agriculture, we all know that there's still opportunities to strengthen it and ensure american producers continue to realize the full benefits. So, Mr. trump, I did notice in your testimony you mentioned that the usmca preserves preferential access to the canadian and mexican markets for U.S. meat, poultry and livestock products. And I want to kind of build on that point for a moment, considering in my home state of north carolina, it's one of the largest turkey producing states in the country.
▶ 2:50:04One concern that I hear from industry leaders is regarding market access for the U.S. turkey exports to canada. Many turkey producers across the country are eager to see additional export opportunities to the canadian market. So as the usmca review process moves forward, what are some specific changes you believe could be made to better support the american turkey producers and expand export opportunities to canada?
▶ 2:50:34>> I appreciate that question. So our focus has been on the broader meat industry, and so we have not called for major changes to the agreement because we view usmca as it is with its strong sps and technical barriers to trade provisions and the duty free trade for most of our meat and livestock products as key to preserving.
▶ 2:50:53So the only additional change we are calling for on the meat industry side is to really see canada and mexico allow trade and products that are that bear common meat names like salami, bologna, prosciutto, etc. Um, so that the eu and other countries do not take our market share for that. So we're not calling for much broader changes beyond, um, the current existing agreement. >> well, in your expertise, how would greater access to the canadian market benefit the U.S.
▶ 2:51:22Turkey producers and bring certainty to, to their operations? >> we, uh, we, we view canada and mexico as, again, our most reliable trading partners. And that trade does provide certainty. So any additional certainty that could be provided to these producers and additional elements that would provide more fair and balanced trade would be something that we would expect to see then additional market share be then be able to take additional market share if that's given to them. The agreement. >> okay.
▶ 2:51:52And while we're here, Mr. trump, I'll just stay here for a moment. The us cattle herd is also at its lowest level in decades, and consumers are seeing the impact through higher beef prices at the grocery stores. As ranchers work to rebuild their herd, they continue to face significant new challenges, including the drought and the emergence of the new world screwworm. At the same time, other segments of the beef supply chain are facing economic pressures, and consumers continue to grapple with high prices. While demand for beef continues to increase.
▶ 2:52:23How can we leverage the usmca to address concerns about affordability for consumers, while also supporting the efforts to rebuild the domestic cattle herd? >> um, that's an excellent question. So first and foremost, we need to preserve usmca, because if we were to walk away from it, that would certainly have impacts on prices. You know, the duty free zero tariff trade allows this integrated market to flourish and products move across the market multiple times. That helps to reduce costs for businesses and ultimately to consumers.
▶ 2:52:52And so we would we would support maintaining that access for everyone, uh, on the, the meat and poultry side as well as on the livestock side. >> great. Thank you. And the one minute I have left, uh, miss bayer china recently committed to purchasing $17 billion in U.S. soybeans annually through 2028, I believe. And as you noted in your testimony, it remains the largest export market for U.S. soybeans. However, chinese purchases of U.S.
▶ 2:53:21Soybeans have declined in recent years as china has turned to competitors such as brazil. In contrast, how does the certainty and stability provided by long term agreements like the usmca influence your year to year planting and business decisions? >> thank you for the question, congressman. We certainly appreciate the attention to the china trade deals. Um, and, you know, monitoring as those loads head their way for delivery.
▶ 2:53:49I think, you know, one of the disappointments for U.S. farmers is that that, that, that hasn't grown as much as as we would have liked. And so in contrast, we find that usmca with our partners in canada and mexico, we've been able to grow exports to them. And so it ends up being a positive relationship for us. >> super. Well, thank you, Mr. chairman. I yield back. >> gentleman yields back. Thank the gentleman. Now recognize the gentleman from illinois, Mr. jackson for five minutes.
▶ 2:54:20>> thank you very much, chairman thompson. And I'd like to give a very special thank you to all the participants today in our program. Um, I feel the same pain that you do regarding what's going on in washington. Um, let me just share this with you. Uh, there are the times, there are times in the moment in the life of a nation when the debate before us appears to be about economics. But I would say what's missing so far in this discussion is really is about the character of the nation.
▶ 2:54:51This is one of those moments when we speak about agriculture and the future of the united states, mexico, canada agreement. We're not merely discussing trade flows, commodity prices, or export statistics. We're discussing whether america intends to keep faith with the people that feed her. We're discussing whether farmers labor will be honored or sacrificed to political theater.
▶ 2:55:14We're discussing whether economic policy will be guided by wisdom or impulse for generation. American farmers have done what america has always asked them to do. They planted in uncertainty. They borrowed against hope. They endured droughts, floods, and market swings. They all understand. And through it all, they fed not only america, but they could feed much of the world. Yet in recent years, many farmers have discovered that the greatest threat to their livelihood is not nature.
▶ 2:55:45It's in washington, particularly the reckless use of abuse of tariffs. Now, let us tell the truth tariffs are sometimes necessary tools. Every nation has a right to protect legitimate strategies and our interests. But when tariffs become political weapons used indiscriminately, they cease being economic policy and become economic vandalism because vandalism is destruction of value that someone else worked hard to create and can.
▶ 2:56:12American soybean farmers spent decades building relationships with international customers. Those relationships were not created by politicians in washington, D.C. they were created by the farmers. They were created by the grain elevators. They were created by exporters and families who understood that trust is earned over years and time. Then suddenly, markets were disrupted. Retaliatory terrorists followed. Customers looked elsewhere.
▶ 2:56:37Competitors in south america stepped forward and the farmers paid the bill, not the politicians, the farmer. The same story unfolded. For the corn producers, corn. >> is. >> woven into the fabric of rural america. It feeds livestock. It supports ethanol production. It drives local economies across illinois, iowa, indiana, minnesota and beyond.
▶ 2:57:00When trade uncertainty enters the marketplace, corn prices weaken, investment slows, and rural communities absorb the shock. A tariff announced in washington becomes a lost opportunity. And decatur, illinois a political press conference becomes delayed. Equipment purchase in bloomington, illinois, a trade war becomes a family struggling to keep a multigenerational farm alive. This is the human cost of economic carelessness. And let us be very clear this is not conservatism.
▶ 2:57:28This conservatism is supposed to value stability. This is the most unstable market I think I've seen in my lifetime. Conservatism is supposed to value markets. That's not what we're seeing today, Mr. chairman. Conservatives are supposed to value predictability and stewardship. There's no relief for the farmers in sight. But we have witnessed too often is not stewardship. It is disruption masquerading masquerading as strategy. It is uncertainty masquerading as strength.
▶ 2:57:57It is economic vandalism carried out in the name of patriotism. Mr. chairman, I would say the farmer deserves better. The nation deserves better. Which brings us to the usmca. The future of the usmca should not be retreat. It must be renewal. The united states, canada and mexico together form the most productive agricultural region on earth.
▶ 2:58:23Our farmers succeed not because they are isolated, but because they are connected, connected to market, connected to transportation networks. Connected to customers, connected to one another. The answer is not to weaken the united states mca. The answer is to strengthen it. We should modernize agricultural trade rules. We should expand market access. We should reduce unnecessary barriers.
▶ 2:58:46We should protect our farmers interest, and we should improve transportation infrastructure at ports, rail hubs, border crossings. We should invest in agriculture, technology, climate resilience, precision farming and rural broadband. And perhaps most importantly, we should provide certainty because capital flees uncertainty, investment fears, uncertainty and farmers cannot plan their future around political improvization america's farmer among the most productive people on earth.
▶ 2:59:16Their success should not depend upon guessing what policy may emerge from washington tomorrow. The purpose of government is not to create chaos. I yield back. >> gentleman yields back. I recognize the gentleman from california, Mr. gray, for five minutes. >> thank you. >> Mr. chairman. Ranking member craig, thank you to all the witnesses for joining us today for this important conversation.
▶ 2:59:47Um, the other day I had the opportunity to visit with the secretary of agriculture, and I asked her to imagine a fictitious alternate universe where she was given the task of harming california agriculture. I said, what would we imagine we could do? We talked through, well, maybe we could disrupt the labor market.
▶ 3:00:16Perhaps we could have chaotic tariffs that we announce one day and retract the next and announce again, uh, perhaps we could increase fuel costs and input costs. Her and I, at the end of that conversation, respectfully agreed to disagree, I guess, on, on what those things might be. But of course, many of those things are things california farmers are facing today.
▶ 3:00:43And, you know, the united states is the world's largest agricultural exporter. California is a big part of that. I represent california's central valley, one of the most productive agricultural regions in the world and certainly in the country.
▶ 3:01:03You know, we have fresh produce, tree nuts, dairy products, wine, uh, and these markets for these products, not only, uh, support local jobs, but they support the entire community.
▶ 3:01:18The usmca agreement has tangibly strengthened trade and relationships with mexico by nearly 11 billion canadian exports, nearly 8,000,000,000 in 2024. A recent purdue study found that tariff reductions under the usmca alone save american families an average of $700 a year.
▶ 3:01:47So it seems rather obvious. Certainly sitting in my district, that preserving a strong, comprehensive trilateral agreement with two of our most important trading partners is is certainly critical. But I'm going to now propose a question to Mr.
▶ 3:02:11Pooley of a different alternate universe where we decide to help california agriculture and specifically specialty crops, which I've heard some discussion of, uh, today. And I'm wondering if you could elaborate and what could we imagine to be the most helpful policies to the specialty crop industry considering, uh, many of these other challenges faced this past year and even beyond
▶ 3:02:42Tariff measures, if I just open the floor to what, what are the things we could do to really strengthen and support our specialty crop, uh, industry. >> thank you. Congressman, I appreciate the question. Uh, and now you've done it. You've gone beyond usmca. What else could we do? Uh, well, this committee has had some focus on our ag labor situation. Chairman thompson has been diligently focused on that.
▶ 3:03:04If there's one thing beyond, um, this issue, our trade relationships that could greatly benefit western producers and the specialty crop industry, california specifically, given our very, very high labor costs, it would be to address our chronic shortage of affordable and legal labor.
▶ 3:03:24Uh, we are a very labor intensive industry, as you know, uh, anywhere from 40 to as high as 50%, depending on the crop and the location, uh, is, is the cost of, of, of labor as a total cost of production. So I would say that that would be, um, that would be our, our, our holy grail. Uh, but having said that, there are elements of usmca, as I've stated previously, that can be addressed that would help somewhat level the playing field.
▶ 3:03:50We do have a, a chronic imbalance in cost structure between mexico and, and U.S. producers. That probably isn't going to change, but it doesn't have to be as dramatic as it is. And so we've suggested, particularly around labor enforcement, that mexico be held to greater account to live up to its commitments in usmca so that we have a more balanced labor situation in terms of cost of production between the two countries.
▶ 3:04:18>> I appreciate that answer and certainly appreciate both the chairman and the ranking members efforts to support specialty crops for california. And, uh, appreciate the leadership of western growers. It's very nice to see you. Good to see you, too. >> gentleman. Yields back. Um, before I proceed to closing comments, I just will say this.
▶ 3:04:40Today would be a great opportunity to help not just specialty crops, but, uh, all the commodities are represented here and all the commodities in the country by signing on as an original co-sponsor to the securing agriculture workforce act. Uh, this is a piece of legislation that has been built with a, obviously with the task force at this committee formed, uh, last congress.
▶ 3:05:03And, uh, uh, and I would just, uh, if you want to know what to do to help specialty crops and everyone else signing on as an original co-sponsor today, I would say would be the most immediate step to take. Uh, with that, I, um, before we adjourn today, I want to invite the ranking member to share any closing comments that she might have. >> thank you so much, Mr. chairman.
▶ 3:05:28Um, so today we've heard from the chairman, republicans, democrats, and every one of our witnesses on the value of usmca for opening up markets for U.S. producers. And unbelievably, >> this has happened at the exact same time that the president went on tv and said that he may not renew it. You cannot make this stuff up.
▶ 3:05:57American businesses cannot thrive in a vacuum. Whether you're a farmer growing crops or a trucker hauling livestock across a border for. Stable friendships with our neighbors and stable markets are good business. Chaos, tariffs and war and tweets? Not so much. The trump administration has a choice and as.
▶ 3:06:21About 40 minutes ago, according to reuters, it's threatening not to renew the usmca. Now this administration could use usmca as an opportunity to help level the playing field for american farmers and lower food costs for american consumers. Or they can further undermine relations with our closest and largest trade partners. And I'm disappointed, but not surprised to see the direction that this administration is leaning.
▶ 3:06:50I know which outcome. Working people, farmers and families that I've spoken to would prefer. I'm unclear if those priorities resonate with the administration. Will we prioritize lowering costs or continue the chaotic midnight diplomacy of a president who upends markets every time he tweets?
▶ 3:07:14I just want to say thank you to our witnesses who came here today, ready to talk about the importance of a stable market and strong trade relationships. We sincerely appreciate your time and your testimony. And with that, Mr. chairman, I yield back. >> well, I thank the thank the gentlelady for closing comments.
▶ 3:07:37I want to thank the panel and and our staff, uh, on both sides of the aisle that worked so hard to, uh, uh, make, uh, these hearings happen. Uh, the usmca has been a highly effective at expanding regional trade, pushing commerce.
▶ 3:07:54Uh, obviously ag and beyond, uh, near $2 trillion annually and making mexico and canada, the united states, top trading partners with significant gains in agriculture. Uh, usmca has really served as a model. I think trade agreement, um, that will benefit from refinement, including improvements with enforcement.
▶ 3:08:22Uh, the house agriculture committee will be at the table. Um, to assure that the voices of our agricultural commodities are heard, uh, building, building on the 18 trade agreements successfully achieved by the president's administration in the past 18 months.
▶ 3:08:43Uh, this coupled with the ag committee's leadership in legislating, uh, with the farm bill, uh, where we doubled the market access program and the foreign market development program, among others. Uh, is good news for our farmers and ranchers. Um, and for consumers.
▶ 3:09:05In the end of the day, the us agriculture trade deficit is projected to narrow to $29 billion for fiscal year 2026. That's still too high. Um, but we didn't, um, uh, but it's a significant recovery from the record setting $43.7 billion deficit. And this represents a 42% reduction in the trade gap supported.
▶ 3:09:34Largely by renewed international trade agreements. You know, an informed and in and informed refinement and reauthorization of usmca is absolutely critical.
▶ 3:09:51Um, and, uh, I believe and I know that this gap will continue to, to close where we, we once again, this country will have a, with trade, with agriculture, a trade surplus, um, uh, as we accomplish this.
▶ 3:10:09And so once again, thank you to our, our panel today for, uh, for bringing your knowledge, your wisdom, your insight, and your representation of all the hard work and families that, uh, that, uh, that you represent under the rules of the committee, the record of today's hearing will remain open for ten calendar days to receive additional material and supplementary written responses from the witnesses to any question posed by a member.
▶ 3:10:37Uh, this hearing of the committee on agriculture is adjourned.