This fall all eyes are on Congress in hopes that it will pass the U.S.-Mexico-Canada Agreement (USMCA). The passage of the USMCA is integral to the economic health of the United States. Why? Because Canada and Mexico now constitute the nations’ two largest export markets, as well as two of its’ top three aggregate trading partners. In 2018, trade with the two countries reached nearly $1.4 trillion, and this economic activity supports an estimated 12 million American jobs.
But, how will the USMCA prove beneficial for New York specifically?
New York will see enormous economic gains from passage of USMCA as several sectors of the state economy are sustained through intracontinental trade with Canada and Mexico. For example, New York’s agricultural and manufacturing markets stand to benefit significantly from removed barriers to commerce contained within the new trade deal.
New York is a leading agricultural state in the U.S. with dairy products by far making up the state's top agricultural exports. In fact, the agricultural industry within the state was worth $5.05 billion in 2016. In that same year, cash recepits by commodity showed dairy products and milk valued at $2.5 billion, apples valued at $317 million, and corn valued at $292 million. Last year, New York exported over $40 million in dairy products alone to Canada and nearly $18 million to Mexico, according to the U.S. Department of Agriculture. USMCA aims to increase this volume of trade as the deal eliminates the remaining barriers facing U.S. dairy and poultry exports to Canada.
These changes open the door to reinvigorate growth in New York’s agricultural industry, according to the New York Farm Bureau (NYFB). As NYFB President David Fisher noted, “It is imperative that Congress pass USMCA. It is essential to maintaining open markets with our major trading partners and expanding market opportunities that our farmers need now more than ever.”
The manufacturing market in New York is also positioned to grow in the wake of the potential USMCA passage. It should come as no surprise that Canada is the number one foreign destination for New York exports. In fact, combined, Canada and Mexico bought almost $23 billion of New York’s exports last year. Purchased manufacturing goods included boilers, machinery, electrical appliances and numerous other items. The Business Council of New York State Inc. joined NYFB in urging the passage of USMCA earlier this month.
“An open trade policy of importing and exporting goods and services with both nations is crucial for New York businesses to not only maintain their bottom line but grow and expand their business,” Heather Briccetti, president and CEO of The Business Council for New York State, said in a press release.
New York exporters know the value of this trade deal. As a result, 55 businesses and organizations recently signed The Business Council of New York State's letter in support of USMCA.
New York’s top three exports to Canada
- Nuclear Reactors, Boilers, Machinery and Parts
- Natural Pearls, Precious Stones and Metals; Coin
- Electric Machinery, Sound Equip; TV Equip
New York’s top three exports to Mexico
- Boilers, Machinery, and Electrical Appliances and Parts
- Electrical Machinery, Equipment and Parts
- Copper and Articles Thereof
Furthermore, out of the 12 million American jobs supported by trade with Canada and Mexico, nearly 800,000 of those currently exist in New York. Given these sector-by-sector opportunities for growth USMCA offers, it’s time to pass the trade agreement that could further benefit New York businesses, workers, and families.
To learn more about USMCA and its benefits for American businesses and workers, visit here.