USMCA will help NM’s agricultural communities
Trade deal will help bring more of our pecans, milk to international markets
It may seem odd to many that a state legislator who represents rural communities is penning an op-ed focused on international trade agreements. However, international trade plays a significant role in rural New Mexico. Conducted wisely, it can strengthen rural communities and create economic opportunity.
New Mexico agriculture, an export-oriented sector, is a multibillion-dollar industry — and, for rural communities across the state, a significant economic driver. According to a report written by New Mexico First, “in every region except the state’s Northwest and Metro regions, the total impact from agriculture ranks in the top five industry sectors.” However, increased access to international markets and modernized trade agreements will set the stage for continued growth in the agriculture sector.
News coverage of ongoing trade negotiations by President Trump with China and the pending congressional passage of the United States-Mexico-Canada trade agreement (USMCA) has focused on large policy issues including intellectual property, digital trade, financial services and currency manipulation. For New Mexicans though, success on both of those fronts has the potential to offer significant economic benefits for rural agriculture communities across the state.
According to the U.S. Department of Agriculture, New Mexico leads the nation when it comes to the production of pecans. New Mexico pecan production is at a record high of 97 million pounds, which means it now accounts for over one-third of all pecan production across the country.
A predominant driver of the growth of the pecan industry is the 1.3 billion Chinese people developing a taste for pecans over the past decade. As domestic consumption has hovered relatively flat, the export market, including China, has economically benefited rural communities. New Mexico’s pecans primarily come from the southern portion of the state, with the majority coming from Doña Ana County. Eddy, Chaves, Luna and Sierra round out the top five pecan-producing counties.
As American growers ramped up production to meet the demand, particularly to produce one of China’s favorite snacks, China began targeting American agriculture exports in response to the strategic counter-tariffs the United States is using to pressure China into ending its abusive trade practices. While trade negotiations with China have been tough, they are beginning to bear fruit. Pecan growers in New Mexico stand to benefit directly. President Trump has agreed to forego additional tariff hikes that were scheduled to take effect this month, but that agreement — designed to foster the next round of negotiations — is contingent on China dramatically increasing its purchases of American agricultural goods over the next two years.
The details are still being hashed out, but it appears China will be purchasing upward of $50 billion worth of American farm products. Given the Chinese affinity for pecans, New Mexico is in a great position to collect a sizable share of that windfall. Similarly, ratification of the USMCA has the potential to increase economic opportunity in rural communities. New Mexico is home to 24,600 farms — 97% of which are family-owned — that cultivate the land to produce millions of pounds of food to feed people from all over the world each year. According to the N.M. Department of Agriculture, New Mexico agriculture directly supports 140,000 jobs and $3.64 billion in wages. The USMCA updates the more than 25-year-old North American Free Trade Agreement (NAFTA) and has the potential to sustain and create more jobs in agriculture and rural communities in New Mexico.
Specifically, U.S. Secretary of Agriculture Sonny Perdue stated, “USMCA cracks into Canada’s unfair and defensive milk supply management program, finally increasing New Mexico’s dairy farmers’ access to the market … so (N.M.) farmers can sell more of their billion dollars’ worth of milk to Canadian consumers.” The agreement also ensures that almost all of New Mexico’s agriculture products that go to Mexico or Canada will remain tariff-free and maintain access to international markets.
In this era of hyper-partisanship, we must remember that rural farmers, ranchers, service providers and workers are counting on federal elected officials to work together, not only to make sure that our rural communities survive, but to ensure they can thrive. Congressional approval of the USMCA and support of ongoing trade negotiations with China are avenues to ensure that rural agriculture communities have access to international markets that create economic opportunities here at home.