U.S. Rep. Steve King (R-Iowa), who represents a district in the northwest part of the state, believes the ratification of the United States-Mexico-Canada Agreement (USMCA), which is designed to replace NAFTA, will provide a market boost for key agricultural products including corn, soybeans and pork.
"Americans thrive when we have strong trade deals in place that open foreign markets to our goods," King told the Iowa Business Daily through a statement from his office. "This is especially true for American agriculture."
The leaders of all three countries have signed off on the deal, but U.S. legislatures have yet to ratify the agreement. President Donald Trump has indicated he wants the bill signed before the August recess.
"[King] applauds President Trump for having negotiated a very strong trade deal in the USMCA, and he would like to see the deal ratified as it would not only help Iowa’s farmers move their products in those two markets, but quick ratification would also give the President greater leverage in his negotiations with China," King's communications director told the Iowa Business Daily.
House Democratic leaders, including Speaker Nancy Pelosi, have signaled broad support for the agreement but are concerned over some provisions, including those relating to labor, environmental issues and some elements linked to the pharmaceutical industry. Pelosi is poised to name the Democratic lawmakers to working groups tasked with parsing the details of the agreement, according to a report by Bloomberg, which further reported that progress is being made after the threat of tariffs on Mexico was lifted.
"Let me give you something that I think is more important than China, vis-a-vis the economy," Larry Kudlow, Trump's key economic adviser, said in an interview with CNBC. “We are hoping that Congress will sign off on it ... Canada and Mexico are gigantic trading partners and I think in economic terms, that’s probably more important than the China story.”