Report: USMCA is a 'powerful driver' for US agriculture, boosting exports and GDP

Trade with Mexico and Canada delivers significant economic benefits to rural communities across the US, according to a new economic analysis released by the Agricultural Coalition for the United States-Mexico-Canada Agreement (USMCA).

Results were presented at a press conference in Washington, D.C., where coalition members urged leaders of the three countries to renew and further strengthen the treaty as the document enters its formal review period.  

"Our analysis shows that the USMCA is a powerful driver for employment, investment, and long-term competitiveness in the US agricultural sector," said Krista Swanson, chief economist for the National Corn Growers Association, a member of the coalition. "While the agreement is due for a few targeted improvements, overall, it is critical to the farm economy and a key part of rural America's success and resilience, particularly during tough economic times like we are in now."  

Under the terms of the agreement, the United States, Canada, and Mexico must begin a formal review of USMCA by July. As part of the process, the three countries will determine whether to renew the agreement, make targeted updates, terminate, or shift to annual consultations.

This economic impact analysis uses a 2024 base-year model to evaluate the impact of US agricultural and seafood exports to Canada and Mexico under the trade deal.

Positive USMCA-impact in US fresh produce industry

The report also examined the economic benefits of the agreement across key agricultural commodities. During the press conference, coalition members highlighted how the agreement supports growth, stability, and market access in their respective sectors.

"The long‑term success of USMCA is a top priority for our members," said International Fresh Produce Association Chief Global Policy Officer Alexis Taylor. "Since the agreement took effect, fresh US fruit export values have increased by 34 percent, while US vegetable exports have grown by 14 percent.”

These gains, Taylor explained, highlight the tangible value the treaty delivers across the fresh produce supply chain and reinforce the importance of a strong, integrated North American trade environment.

Among the findings, the report notes that agricultural and seafood exports to Canada and Mexico generated $149 billion in total economic output, supporting nearly half a million jobs and $36 billion in wages. Likewise, every $1 in industry exports under USMCA drove an additional $2.45 of supported economic activity in the United States.

Finally, the report emphasized that USMCA-related agricultural and seafood trade contributed $64 billion to the US GDP and supported $13 billion in federal, state, and local tax revenue.

*All images are referential and courtesy of the USDA.

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