Perdue: NAFTA deal may shrink trade aid
An agreement of the United States, Mexico and Canada to update the North American Free Trade Agreement may mean that the Trump administration’s aid package to farmers may be smaller than the originally projected $12 billion, Reuters has reported.
“We will be recalculating along as we go,” Perdue said in a phone interview with Reuters, regarding the second tranche of the planned compensation, estimated at about $6 billion, which was first announced in July after the U.S. and China imposed trade tariffs on each other’s imports.
The U.S.-Mexico-Canada Agreement has not passed Congress and probably will not be considered until next year. Farm leaders have said the USMCA will not make up for the loss of markets after Mexico and Canada placed tariffs on U.S. farm products in retaliation for the tariffs the Trump administration has placed on Mexican and Canadian steel and aluminum.
The farm leaders have called on the Trump administration to remove the tariffs on Mexican and Canadian steel and aluminum, but the administration has said those tariffs are separate from the USMCA.