NAFTA withdrawal or changes could threaten Texas agriculture

NAFTA withdrawal or changes could threaten Texas agriculture

Posted: Updated:

Trade leaders from the United States, Mexico and Canada concluded the latest rounds of talks to update the North American Free Trade Agreement. Not much was resolved in these latest discussions. 

President Trump is threatening to withdraw from the trade agreement unless it can be reworked in favor of the U.S. 

According to a report issued by the Bank of Montreal, terminating it would harm the U.S. and Canadian economies and reduce their competitiveness compared to Asian and European countries. Texas would be hard hit, largely affecting ag and energy.

"NAFTA has demonstrated a great benefit to agriculture in this part of the world," said Steve Verett, executive vice president of Plains Cotton Growers. "Now that's not to say we can't make improvements. But, it's kind of one of those deals, we don't need to be throwing the baby out with the bath water."

Verett points out that under the current plan, the ag industry runs on a trade surplus. It could be harmed if negotiators aren't careful with a potential new deal.

Based on these latest discussions, there is doubt about the possibility of a deal being reached by the end of March 2018 as previously planned. 

Powered by Frankly