Brought to you by CME Group:
In the last year, there have been threats made by the Trump Administration to exit the North American Free Trade Agreement (NAFTA). This free trade agreement (FTA), was signed in 1994 and effectively eliminated tariffs on most agricultural goods between the United States, Canada, and Mexico. Since the implementation of NAFTA, these three countries have formed a North American market, trading increasing volumes of agricultural products and becoming irreplaceable trade partners. In many instances, such as cattle and soybean crushing, NAFTA has enabled intra-industry efficiencies where products are easily traded across borders. Additionally, the interconnectedness of FTAs means that open access to Canada and Mexico has indirectly allowed the United States preferential access to several global markets.
Read more about NAFTA’s impact on the U.S. agriculture markets