Iowa Governor Kim Reynolds is urging lawmakers in Washington to ratify the United States-Mexico-Canada Agreement (USMCA), which she says will help bring stability to her state's agriculture industry.

"Our message to Congress is to please rectify the USMCA. That'll bring a lot of certainty and predictability to the market," Reynolds told Cheddar on Thursday.

Following a year of negotiations, the USMCA was signed by President Donald Trump, now former Mexican President Enrique Peña Nieto, and Canadian Prime Minister Justin Trudeau last November at the G-20 Summit in Buenos Aires. The trade deal was meant to replace the North American Free Trade Agreement (NAFTA), which was established in 1994 and created a free trade zone between the three neighbors.

In an overwhelming vote last week, Mexico's General Congress approved the USMCA making Mexico the first country to fully sign onto the deal. The U.S. Congress and the Canadian Parliament have yet to ratify the pact.

"This is a very important advance," Mexican President Andrés Manuel López Obrador said at a press conference last week. "It is a clear sign that there is unity in the country."

Canada and Mexico are currently the second and third largest trading partners with the U.S., with total trade topping $617 billion and $611 billion in 2018 respectively, according to government figures.

The USMCA covers numerous aspects of cross-border trade, including labor laws, environmental standards, and intellectual property rights. It also has specific provisions for various sectors like auto manufacturers, digital services, and agriculture. The U.S., for instance, negotiated hard for easier access to the Canadian dairy market.

Democrats, however, have expressed concerns over weak enforcement measures on workers' rights and environmental regulations, and have refused to hold a vote on the deal in the House.

"Without real enforcement mechanisms we would be locking American workers into another bad deal. A new trade agreement without enforcement is not progress for the American worker, just a press release for the President," House Speaker Nancy Pelosi (D-Calif.) said in a statement in May. "We have been on a path to yes, but it must be a path that leads to an agreement that delivers positive results for American workers and farmers."

Nonetheless, Reynolds told Cheddar that Iowa's economy is growing, despite "some significant challenges with agricultural." Iowa is currently the second largest agricultural exporter in the U.S., with nearly 50 percent of its exports going to Canada and Mexico in 2018.

Farmers "really, really, really would like to see USMCA ratified," the Republican governor said.

Share:
More In Business
Microsoft Integrating Activision With 'Next Phase of the Internet' as Its Goal
In what could be the biggest deal in video games history, Microsoft's purchase of Activision Blizzard underlines the company's aggressive push in gaming and beyond into its long-term vision of being top dog in the metaverse. Adam Hollander, former director of gamification at Microsoft and founder of Hungry Wolves NFT, joined Cheddar's Opening Bell to discuss. “Microsoft always plays chess, not checkers," he said, describing the price tag as an opportunity cost. "It's about integrating Activision Blizzard in with Azure and Windows and Xbox and Hololens and Minecraft and everything else that they're doing for the inevitable goal of being the major player in the next phase of the internet."
AT&T, Verizon Delay 5G Rollout Near Airports, Runways
Telecom giants AT&T and Verizon have agreed to delay activating their 5G services around airports and runways once again. This comes after major U.S. airlines voiced their concern over the rollout of 5G technology, warning of an impending "catastrophic" aviation crisis. Peter Andersen, Chief Investment Officer, Anderson Capital Management joined Cheddar's Opening Bell to discuss.
Earnings Season Kicks Into High Gear
Earnings season kicks into high gear this week as big players are on tap to report their Q4 numbers. Goldman Sachs, Procter & Gamble, United Airlines, and Netflix are just a few of the companies we're keeping a close eye on to give us a better idea of how they're dealing with the Omicron variant, inflation and interest rates. David Nelson, chief strategist at Belpointe, gives a preview of what to expect.
Inflation Among Biggest Concern for CEOs in 2022
Concerns over inflation have become one of the biggest worries for executives. A survey from The Conference Board shows that more than 900 CEOs consider inflation a top tier concern, a major shift from last year's survey that had it as a low-level concern. Rebecca Ray, Executive Vice President, Human Capital, The Conference Board joined Cheddar's Opening Bell for more.
Load More