The American Feed Industry Association (AFIA) said it is troubled by the Office of the U.S. Trade Representative's decision not to renew the U.S.-Mexico-Canada Agreement (USMCA) as of July 1.
The AFIA said the USMCA is not without flaws but has been a cornerstone of growth and stability for the animal feed and pet food industry and should not be allowed to expire over the next 10 years. The group said the decision to let the agreement lapse risks introducing uncertainty into one of North America's most successful agriculture trade partnerships.
"We have reservations about the administration's decision not to renew the USMCA at this time," said Constance Cullman, AFIA President and CEO. "The USMCA has provided the confidence and predictability that the U.S. animal feed and pet food industries need to invest, plan and compete. While bilateral agreements may address specific issues, they cannot fully replicate the efficiencies of a single, integrated North American market.
"Moving away from the USMCA risks creating unnecessary complexity and uncertainty for businesses that rely on seamless trade with Canada and Mexico," she continued. "We appreciate Ambassador Greer's indication that discussions are continuing, and remain hopeful the administration can preserve the strong trilateral partnership that has made the USMCA such a success for U.S. agriculture."
The AFIA said it supports the administration's goal of strengthening the United States' position under the USMCA. However, because the agreement will remain in effect unless the United States formally withdraws, the group said annual reviews through 2036 would erode the predictability businesses need to invest and compete. The AFIA said the administration should prioritize negotiations now to secure a long-term renewal that provides lasting certainty for North American trade.
In addition to its own advocacy efforts, the AFIA joined the Agricultural Coalition for USMCA earlier this year. Hundreds of agricultural organizations across the country have echoed the importance of the USMCA, which has driven an additional $2.45 of supported economic activity in the U.S. for every $1 in total agriculture exports, the AFIA said.
For the animal food industry specifically, exports to Canada and Mexico have grown from roughly $2.3 billion in 2020 to more than $3.3 billion in 2024, according to the AFIA.
The AFIA said it will continue to highlight the need for a trilateral trade agreement with its neighbors as Ambassador Greer and the administration consider next steps.
