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
The Rise of the Cashless Revolution
On this episode of Cheddar Reveals, Yair Nechmad, Nayax CEO, discusses the future of cashless payments, and how cashless payments give retailers a competitive edge and allow merchants to scale business; Jason Thomas, Global CEO of Tappit, breaks down how the pandemic accelerated the transition to cash-free live events, and why that trend is here to stay; Cheddar gets a look at Curiosity Steam's 'Blockchain Revolution.'
The Future of Cashless Payments at Live Events
Not long ago, banning cash at a large public event would have been seen as a crazy idea that would deter sales. But our cash-free future is getting closer with the use of contactless payments being implemented in sports venues, music festivals, concerts, and more. Jason Thomas, Global CEO of Tappit, joins Cheddar Reveals to break down how the pandemic accelerated the transition to cash-free live events, and why that trend is here to stay.
The Future of Cashless Payments
Yair Nechmad, Nayax CEO, joins Cheddar Reveals to discuss the future of cashless payments, and how cashless payments give retailers a competitive edge and allow merchants to scale business.
Bentley Pledges End-To-End Carbon Neutrality By 2030
Bentley aims to become end-to-end carbon neutral by 2030. The luxury car brand has outlined steps to achieve this goal, including switching its entire model range to plug-in hybrid or battery electric vehicles by 2026 and become fully electric by 2030. Christophe Georges, president & CEO of Bentley Americas, joined Cheddar to discuss this new pledge and what consumers can expect from future models.
PepsiCo Pledges To Advance Food Security To 50 Million People By 2030
PepsiCo has announced a new goal to advance food security for 50 million people by 2030. To help achieve this goal, the company is partnering with local communities around the world to expand access to nutritious foods, increase productivity and incomes of small-scale farmers. Jon Banner, president of the PepsiCo Foundation, joined Cheddar to discuss this new pledge and his argument for why the world has to rethink the way it produces and distributes food.
NFT Authentication Startup ORIGYN Raises $20 Million
ORIGYN Foundation, an NFT authentication start-up based in Switzerland, has secured $20 million in funding from investors like Paris Hilton, Bill Ackman, and Polychain Capital, among others. The non-profit, now valued at $300 million, uses AI technology to verify non-fungible tokens across art, collectibles, digital media and luxury goods. Daniel Haudenschild, CEO of ORIGYN Entreprise, discusses how the money will help put power back into the hands of artists, creators, and collectors.
Butterball CEO on Turkey Prices, Supply Chain Woes
With millions of Americans set to host Thanksgiving this year, shoppers can expect to pay more at grocery stores, with the price of a thanksgiving meal up 14% from last year. According to the USDA, the average price of an 8- to 16-pound frozen turkey is up 21% from a year ago. Jay Jandrain, CEO, Butterball, joined Cheddar’s Opening Bell to discuss how his company is being affected by supply chain challenges and rising prices.
Load More