So how is the USMCA different from the North American Free Trade Agreement, and why should you care?
Although the final revised text of the USMCA has not yet been released, the deal as detailed in May contains numerous tweaks from its predecessor, both big and small. As an agriculture economist who studies trade, I believe three changes are especially noteworthy.
Please pass the butter
Since 1994, the U.S. and Canada have dropped tariffs and other trade restrictions on most agricultural products. But there were a few exceptions, most notably dairy.
Dairy was a particularly problematic sticking point in year-long negotiations between the three countries. The U.S. and Canada both have long histories of protectionist policies, such as subsidizing dairy farmers and setting import quotas on milk. Canadian tariffs on some products can be as high as 300%.
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