USDA making contingency plans for NAFTA pullout

USDA making contingency plans for NAFTA pullout
Agriculture Secretary Sonny Perdue said Wednesday that he was working with Trump administration officials and Congress on a plan to protect farmers and ranchers from the potential market effects of the U.S. withdrawing from NAFTA. "We're talking with the administration and Congress about some mitigation efforts if that were to occur; about how we could protect our producers with that [farm] safety net based on prices that may respond negatively to any kind of NAFTA withdrawal," Perdue told reporters after a USDA ceremony honoring veterans. Perdue doesn't think a contingency plan will have to be put into action, however, saying that he believes NAFTA 2.0 will be "successfully" renegotiated. "There'll be some nervous bumps in the meantime," because trade is so important to American agriculture, Perdue said. With President Donald Trump threatening to issue a formal intent to withdraw from the trade deal — and Commerce Secretary Wilbur Ross disputing that such a move would cause a drop in agricultural exports — U.S. farm groups are increasingly frustrated that their concerns don't seem to have any influence at the highest levels of government. Perdue acknowledged that pulling out of NAFTA could have "some tragic consequences" for U.S. producers, but also said that farmers can adapt to changes in the market.

November 9, 2017 at 08:45AM