Question Period Note: CUSMA – AGRICULTURE AND AGRI-FOOD ISSUES

How will the Canada-United States-Mexico Agreement (CUSMA) impact the agriculture and agri-food sector?

1. The CUSMA will preserve the existing agriculture relationships between Canada, the United States, and Mexico.

2. The agreement provides continued access to the most important export destination for many of our crop and livestock producers – Canadian agri-food and seafood exports to our North American partners totaled $37.3 billion in 2018.

3. The CUSMA preserves and maintains the supply management system. It provides for some additional market access to the United States for dairy, poultry, and egg products.

On November 30, 2018, leaders signed the Canada–United States–Mexico Agreement (CUSMA). On December 10, 2019 delegations from the three countries met in Mexico City to finalize an amended agreement (Protocol of Amendment to the CUSMA). The Protocol includes outcomes that address concerns of the Democratic leadership in the U.S. House of Representatives and makes the deal more progressive. All three countries must now undertake their domestic ratification procedures. Once all three countries have notified of their readiness to implement the Agreement, the Agreement would enter into force “on the first day of the third month following the last notification”.

The Deputy Prime Minister, supported by Global Affairs Canada, will determine the process and timing of Canada’s ratification and implementation. As part of Canada’s domestic process, the new Protocol may need to be tabled for 21 sitting days in the House of Commons according to the Policy on Tabling of Treaties in Parliament. Implementing legislation will need to be introduced in Parliament.

In the United States, the Agreement’s implementing legislation is expected to be sent to Congress imminently and the House of Representatives could vote on it before Christmas. Once implementing legislation is submitted, trade promotion authority provides for expedited consideration in Congress.

In Mexico, the Agreement was approved by the Senate on June 19, 2019. A presidential decree was published in the Official Gazette on July 29, 2019, which enables the Foreign Affairs Secretariat to prepare the treaty ratification instrument for signature. As changes were made to the Agreement in the Protocol of Amendment, Mexico’s Senate will need to approve the new Protocol and is reportedly on board with the proposed changes.

Canada and the U.S. benefit from highly integrated supply chains with bilateral agriculture and seafood trade totalling C$63.4 billion in 2018, of which Canadian exports totaled $37.3 billion. In addition, both countries work collaboratively on issues of mutual interest such as regulatory cooperation, science and technology cooperation, third country market access, and promotion of science-based international standards.

Canada and Mexico enjoy a productive bilateral agricultural trade relationship and have highly integrated markets. Canada was Mexico’s fourth-largest export market for agri-food and seafood products in 2018 while Mexico was Canada’s fourth-largest export market. Overall, bilateral agricultural trade between Mexico and Canada reached C$4.6 billion in 2018. Mexico enjoyed an agricultural and seafood trade surplus of C$779 million in 2018.

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