Washington Business Fall 2019 | Washington Business | Page 28

federal focus
Unpacking the USMCA
New trade deal with Mexico and Canada will be
a boon for Washington.
Amy K. Anderson
The leaders of Mexico, Canada and the United States signed off on a new trade agreement last year
that will modernize NAFTA, the agreement that’s governed North American trade for the last 25 years.
But it needs to be ratified by all three nations before it takes effect — and time is running out.
At A Glance
U.S. food and agricultural
exports to Canada and Mexico
have more than quadrupled
under NAFTA – growing from
$9 billion in 1993 to nearly
$40 billion in 2018.
USMCA builds on the success
of the NAFTA agreement, and
will ultimately lead to freer
markets and fairer trade.
The USMCA ratification
must happen this year in the
U.S. or wait until after 2020
with an impending election
season, which would move
implementation into early 2021.
28 association of washington business
Manhasset Music Stands manufacturers high-quality products in Yakima that are exported around
the world.
NAFTA was good for Washington state. The new United States-Mexico- Canada
Agreement (USMCA) will be, too.
As the most trade-driven state in the nation, Washington will benefit from a fully
ratified USMCA agreement, which will modernize the 25-year-old North American Free
Trade Agreement and create more balanced, reciprocal trade that supports high-paying
jobs for Americans and Washingtonians and grows the North American economy.
Negotiators for the three nations reached agreement at the end of September 2018,
and the leaders of the three countries signed it Nov. 30. Until all three countries ratify
the agreement, NAFTA continues to govern North American trade.
And that trade is substantial. Last year, Washington exports to Canada and Mexico
totaled $9.7 billion, with $7.7 billion to Canada and $2 billion to Mexico. Washington
state’s top exports to Canada and Mexico in 2017 included computer & electronic
products, processed food, primary metal products and paper.