According to CoBank, the newly minted United States-Mexico-Canada Agreement, or USMCA, looks in many respects "very similar to the old one. It will lead to significant change in the auto industry, but changes to other industries will be marginal, including agriculture."
Among the changes in the modernized North American Free Trade Agreement are that the U.S. will get additional access to Canada's dairy market, going to about 3.6 percent market access from roughly 1 percent. Also, a controversial milk pricing class in Canada will be eliminated, which CoBank said "should level the playing field" more for U.S. producers and allow some to regain lost market share.
U.S. wine producers also stand to get more access to Canada under USMCA along with the poultry and egg sectors.
Mexico started to warm trade ties with Argentina and Brazil during the trade dispute, so the new agreement is seen as good news for producers of American farm commodities that compete with Brazil and Argentina, including U.S. grains and livestock products.
"Each agricultural sector will interpret USMCA differently," the bank's report said. "To some, it is a significant step forward and to others it is akin to preservation of the status quo."