Congress Must Act on USMCA
By Rep. Dusty Johnson
Trade is about more than exchanging goods and services. Trade can lift families and industries out of an economic slump and offer opportunities for growth. The absence of trade can result in uncertainty and struggle.
Here in South Dakota, it’s no secret that trade is vital to our economy and the numbers speak for themselves. According to the U.S. Trade Representative, South Dakota is the country’s 10th largest agricultural exporting state, shipping $4 billion in domestic agricultural exports in 2016. In particular, our state’s agricultural producers have enjoyed expanded market access to our neighbors, Canada and Mexico, since passage of the North American Free Trade Agreement – more commonly known as NAFTA.
NAFTA paved the way for Canada to become our nation’s top export market for agricultural products, with $20 billion worth of product crossing our northern border. Mexico isn’t too far behind in third place, with product worth $18.6 billion.
We must keep this momentum going, which is why Congress needs to act on ratifying the newly negotiated United States-Mexico-Canada (USMCA) Agreement. Months have passed since the USMCA was signed and in the meantime, our trading partners and family farms across South Dakota are stuck in a cycle of uncertainty.
This week, I had breakfast with U.S. Trade Representative Robert Lighthizer. He explained the impressive progress the President’s team had made on the trade deal. USMCA is clearly a better deal than NAFTA was. That doesn’t mean it’s perfect, but it is clearly better for the United States. Ambassador Lighthizer made it clear that inaction would undermine U.S. credibility and threaten our prospects to negotiate future trade agreements with other countries.
We need to send a clear message that the United States, and South Dakota, are open for business.
Since coming to Congress, I’ve had the opportunity to study the USMCA. Ambassador Lighthizer is right – President Trump and his administration have made much-needed improvements to our trading agreement. Prominently, the USMCA gives U.S. dairy producers greater access to the Canadian market, driving additional demand and opportunities for our producers.
Congress also needs to signal progress in negotiations with other nations. Secretary of Agriculture Sonny Perdue recently testified before the House Agriculture Committee, and signaled the steel and aluminum tariffs, along with retaliatory tariffs on U.S. agriculture products, would likely be eased with the approval of the USMCA. This change would give the U.S. and President Trump additional leverage to conclude negotiations with China and to ensure our producers and manufacturers have a level-playing field.
South Dakota farmers and ranchers want market access and a fair opportunity to compete. This is Congress’s chance to show the world the United States is a leader on trade. With an ever-increasing global population, South Dakota stands ready to help feed the world and keep our family farms prosperous. I will be doing my part to ensure House leadership brings the USCMA ratification to the floor as soon as possible.
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Dusty is correct: “The steel and aluminum tariffs, along with retaliatory tariffs on U.S. agriculture products, would likely ease under the USMCA, giving the U.S. and President Trump leverage to conclude negotiations with China.” It’s crucial to forge smart, mutually-beneficial agreements because, as Johnson observes, “trade is vital to our economy.” Let’s support local farmers and ranchers. South Dakota has become the country’s 10th largest agricultural exporter, surpassing the $4 billion mark in 2016. No rational person disputes that “trade can lift families and industries out of an economic slump and offer opportunities for growth.” Let’s grow the economy! Let’s expand the global market for high-quality products made in SD.
Contrary to David Barranco’s comment above, Dusty is not correct and once again got played by Washington elites, this time Robert E. Lighthizer, an international trade lawyer, long time political pundit serving as a Chief of Staff for the Senate Finance Committee and Deputy USTR for Reagan, and served as Vice Chairman of the Board of Overseas Private Investment Corporation. He has, however, never conducted any trade operations and relationships nor has he ever worked in the private sector whether it be manufacturing, trade, logistics and the millions of other jobs involved in the US trade industry. He’s just another lawyer with an irrelevant undergrad degree and came from wealth on the east coast and believes he is an expert on trade and trade issues, never having to work in the trade industry himself.
Although we agree with the President’s revamping of NAFTA, his current trade war with China, or should we say his anti-China tirades, is the death knell for this Republican and am enlightened to campaign against this clueless President and his unqualified appointees, especially Robert E. Lighthizer. There have been many more clueless appointees before Lighthizer as you all know.
Donald J. Trump and Dusty Johnson should learn what the word “capitalism” means and its not what Donald Trump has been spewing concerning the “billions and billions” of dollars being shoveled into the US Treasury from the USTR 301 Tariffs implemented by Robert E. Lighthizer. We really believe that Trump thinks that China is paying these tariffs rather than the fact that Americans are paying these tariffs by hidden taxes of increased costs of goods. Trump and Johnson should also understand that the US government does not create wealth, the private sector does, and by taking the private sector’s role as wealth creation away by picking winners and losers in Capitalism is not Capitalism. It is socialism.
We had talked to Dusty Johnson about this issue while he was campaigning in South Dakota and my first impression was he didn’t understand a word that was said and apparently he didn’t understand a word that was said during his breakfast with Robert E. Lighthizer. Mr. Johnson, Robert E. Lighthizer is not an expert in trade issues, I am, having been an international trader my entire career from all importing/exporting nations of the world including China and you are wrong. Rep. Dusty Johnson once again gets played by a career Washingtonian.
Donald J. Trump should have stopped with the NAFTA revamping. I’ll say this again. The effect of China on the US GDP is 1.2% on goods fully manufactured in China as imports into the US. Yes, only 1.2% and consider that US corporations receive 55 cents of every dollar imported from China in profiting creating a lot of high paying jobs in America. The current issue in trade has always been, since I had been a trader, is the lack of enforcement by the US Customs & Border Protection and other agencies on US trade laws by ‘violating’ US companies and has caused more damage than any misconceived issue Donald J. Trump and Robert E. Lighthizer has come up with to start a war with China. We have turned in five US companies, at great expense to us, that finally after decades of notifying CBP, in efforts of industry policing itself, the US Customs & Border Protection finally has brought a case against them. These companies behavior caused several antidumping issues with China and large losses for domestic manufacturers all because of the ineptness of our enforcement divisions of our federal agencies.
And finally, the vast majority of Chinese people cannot afford most US manufactured goods and those few that can, for example, will buy a Mercedes Benz, a Porsche, or BMW long before they will buy a Chevrolet. They also buy French wine rather than California wine and their need to supply our US manufacturers with needed commodities is paramount for a healthy America.
In summary, Donald J. Trump is giving ‘reparations’ to American farmers to the tune of $8 billion to date while completely ignoring those in the private sector relying on commodities from China like they were second hand citizens of the United States, less important than illegal aliens. These people also are required to pay taxes on money they never received to pay for these farmers’ retributions. Donald Trump has once again divided the nation by this complete lack of compassion for the non-farm citizens suffering under his dictator type rule. Anyone that knows me knows that I am a staunch Republican but I am backing Joe Biden for the 2020 race, not Donald J. Trump.
Jeff, I don’t read posts left by California raisins. You’ve been out in the sun too long. Mind your own business.
I’m a South Dakotan native anonymous and anyone with any IQ above 10 would not respond to a chicken afraid to identify himself. I am not responding BTW to you but this site where everyone hides behind the wall of the internet and as studies shown there is a reason for that. Go back to the IQ statement above.
Mr Anonymous above is correct. You left South Dakota, so stop with your ranting and junior high IQ slams. With the length of your rants…don’t you have a job? Biden? Give us a break.
just so *many* words. Steve makes a cogent point
LOL, you speak in sound bites or can’t you get past a sentence or two before you get bored. Is that what a friend of education does in nurturing kids in the educational system? So your the one that teaches kids to hang on their smartphones all day with cryptic texts to each other.
“So your the one that teaches…”
Stratospheric IQ on display. Thanks for sharing your wisdom, Solon.
Please explain? If you are talking about your instead of you’re, yeah my phone did that and no way to correct it. Any other question or comment?
Well Mr. Munson from Western Area Power Administration at least you don’t hide behind a fake moniker. My “rants” are long because I have a lot of experience gained from outside of this state that you apparently can’t fathom. Yes I have a job working on a program that will make me more money in one year than you’ve made in two lifetimes. Yes Biden bud. Even Senator Thune did not endorse Trump as well as many other prominent Republicans and I see why now. I’ll agree, it took awhile.
Jeff, Your rants are long because you have nobody else to talk to and nothing else to do.
Go visit the dog beach.
There is a great dog beach in Del Mar but my little miniature Dachshund gets stuck in the sand with her short arms and legs. (Do dogs have arms or are they all legs?)My labs, however handle it great.
Anonymous, you really are giving the State of South Dakota a bad name with your behavior. You might want to think about that.
Jeff, don’t bother. This state has the highest rate of exporting intelligent people. They leave because you can make so much more money and you don’t have to put up with republican corruption actively on display. It’s a great place to retire though since you have so many low wage workers to do your chores.