A Senior Risk Management Analyst with HAMS Marketing Services suggests, despite the media attention being paid to start of the renegotiation of the Canada United States Mexico agreement, that deal will remain in place for another 10 years.
The Canada United States Mexico Agreement, which came in to effect July 1, 2020, replaced the 1994 North American Free Trade Agreement.
With the first mandatory joint review of the agreement set to begin formally next month pork producers on both sides of the Canada U.S. border are closely tracking developments.
Paul Marchand, a Senior Risk Management Analyst with HAMS Marketing Services suggests, despite the stepped-up media attention, there is no reason to panic.
The negotiation will probably start at the beginning of July, the renegotiation. What’s gong to happen in the meantime is we’re going to hear an announcement that it’s either going to be maintained, renegotiated or one country or another is going to pull out and I’ll leave that up to you to determine who that might be but the agreement is still in place until 2036. That’s important because we’re going to start to see a lot of headlines and a lot of things revolving around the CUSMA renegotiation that could cause some concern.
I don’t think there’s any reason to panic and we should always be vigilant and monitoring it as closely as possible because it does affect demand for Canadian pork or could. But, even if the headlines read, “CUSMA is falling apart” or “CUSMA is not to be renegotiated” or something the to that effect and I have no advance knowledge of any of this but if there’s any negative headline that suggests that, just remember the agreement is in place until 2036.
~ Paul Marchand, HAMS Marketing Services
Marchand acknowledges, potential changes to the deal are cause for concern but there is still breathing room.
