FRESNO, Calif. (KSEE) — Local farmers believe that President Trump’s new trade pact will help the Central Valley.
John Chandler is a Central Valley almond farmer who was happy to hear the USMCA trade pact was signed.
“It’s a big deal for agriculture in California. We’re right on the Mexican border, they’re major trade partners for us,” Chandler says.
The trade pact replaces the NAFTA Agreement that’s been in place since 1994.
Ryan Jacobsen, CEO of the Fresno Farm Bureau says it’s a step in the right direction.
“This just modernizes it, takes into account some of our newer crops and just strengthens the relationship between the three trading partners,” Jacobsen says.
The three countries involved are Canada, the United States, and Mexico.
President Trump signed the pact on Wednesday. Backers say it will have more impact than the recent Phase-1 trade deal with China.
If enacted, USMCA will impact $1.4 trillion dollars in existing annual U.S. trade.
“USMCA offers certainty for growers in California,” said Jacobsen. “It affects just about everything that grows here. Instead of what sometimes were handshake deals, this puts it into certainty, puts it into the treaty between nations.”
The USMCA which stands for United States Mexico and Canada Agreement is expected to grow $663-billion dollars in exports and services, enhance existing trade practices, and set new standards for international shipping.
Local agriculture leaders say the deal, is a big deal.
“Canada and Mexico represent about 56,000 jobs in California ag,” Jacobsen says.
“We’re not talking this is just some small ripple throughout the economy, this is something major because most of those jobs are here in the valley. The fact that this helps to strengthen that relationship is nothing but a good thing for us.”