WASHINGTON – Minnesota-based Cargill, Land O'Lakes and CHS Inc. have joined more than 100 agriculture-related companies and trade associations to sing the praises of the North American Free Trade Agreement (NAFTA) to President Donald Trump.
In a letter dated Monday, the day Trump announced plans to renegotiate NAFTA, the group explained that the 1994 free trade agreement between the U.S., Canada and Mexico has been a "windfall for U.S. farmers, ranchers and food processors."
U.S. food and agriculture exports to Canada and Mexico "have more than quadrupled, growing from $8.9 billion in 1993 to $38.6 billion in 2015," the letter said.
Protecting those gains is clearly the intent of the letter.
"In the 20 years since NAFTA was implemented, the U.S. food and agriculture industry has become increasingly efficient and innovative — growing to support millions of jobs," the letter said.
"We are a signatory on the letter because we recognize the benefit trade policies like NAFTA generate for farmers, our employees and consumers and we want to work with the Trump Administration and Congress to maintain and expand upon these gains," Cargill said in a statement.
Trade economist Tim Kehoe at the University of Minnesota said NAFTA has led to a sharing of production functions in the U.S. auto industry and some other U.S. manufacturing industries, as well as agriculture and food processing.
"I can't see how they can renegotiate this in a few weeks," said Kehoe, who helped Mexico negotiate the original NAFTA deal.
