Produce industry reacts to USMCA trade agreement decision
By
Craig Levitt
Produce industry reacts to USMCA trade agreement decision
Since Donald Trump took office for his second term, trade relations with the United States’ closest allies have been… tumultuous. It started with on-again, off-again tariffs, then yesterday the Trump administration said the United States would not extend the trade agreement (USMCA) with Canda and Mexico.
So, what does this mean for the produce industry?
The USMCA agreement was discussed at the IFPA Washington Conference, which was held in June. “USMCA is an important trade agreement between the three countries, maintaining tariff-free trade for fresh produce and key U.S. inputs while largely preserving market access established under the North American Free Trade Agreement," IFPA said. "Among its core beliefs on trade, IFPA has maintained that fair, open and science-based trade policies are essential for a thriving fresh produce and floral sector and that strong international trade relationships are critical to ensuring global access to fresh, nutritious food.”
Further, Alexis Taylor, chief global policy officer for IFPA said, "The United States' decision not to renew the U.S.-Mexico-Canada Agreement for an additional 16 years, does not change the fact that USMCA remains the foundation of a strong, reliable North American produce market. Extended negotiations introduce new uncertainty for an industry that relies on long-term planning and predictable trading relationships, underscoring the need for stability and certainty across the North American produce supply chain.
"The International Fresh Produce Association supports finalizing USMCA negotiations and urges all three countries to preserve the benefits of a strong, predictable North American trading framework that strengthens grower competitiveness, supports food security, and keeps fresh produce moving efficiently across borders."
The Canadian Produce Marketing Association said, “CPMA is disappointed by this week's announcement that the United States has not agreed to a full renewal of CUSMA/USMCA/T-MEC. Our members and partners across the fresh produce supply chain have continued to voice our strong support for this important Agreement, including through our most recent joint letter to all three governments.
“Tariff-free and fair international trade across North America in fresh produce not only offers important economic growth opportunities for businesses, but also ensures consumers continue to have access to safe, affordable, and healthy fresh food options year-round. For the fresh produce sector, this integrated market supports supply chain efficiency, long-term business planning, and the stability needed to keep product moving reliably across North America.
“Ongoing trade volatility and the inherent uncertainty of tariff policies hinder long-term planning and investment across the sector. Given the perishable nature of fresh produce, even minor disruptions-such as inconsistent or misaligned regulatory application, unjustified inspections, or unilateral trade measures-can delay shipments, increase costs, and erode established commercial relationships.
“As negotiations progress, CPMA will continue to advocate for a robust trilateral North American agreement that secures tariff-free produce trade across the continent.”
Dante Galeazzi, president and CEO of the Texas International Produce Association, said, "Yesterday's announcement provides an opportunity to strengthen portions of the USMCA (aka CUSMA, T-MEC), as well as an opportunity for our industry to be vocal. As policymakers evaluate the agreement, we should remind them that North American supply chains for fresh fruits and vegetables must continue moving efficiently while modernizing the agreement to address today's challenges."
The agreement does not expire until 2036, but yesterday was the deadline for each country to decide whether they wanted to extend until 2042 or renegotiate.
