COLUMNISTS

Gov. Kim Reynolds: Iowa needs Congress to ratify the U.S.-Mexico-Canada trade agreement

Gov. Kim Reynolds
Guest columnist

Most springs in Iowa are marked by farmers in the fields and a refreshing breather from frigid winters. Yet, this one brings with it a potentially incredible lift for our farm families, small business owners, entrepreneurs, advanced manufacturers, and exporters.

That is, IF Congress ratifies United States-Mexico-Canada Agreement also known as USMCA. 

This new trade agreement would add $68.2 billion to the U.S. economy and create 176,000 new jobs, according to a study from the International Trade Commission just released last week. The study further stated:

“While USMCA is anticipated to have a positive effect on all broad industries within the national economy, manufacturing would experience the largest percentage gains in output, exports, wages, and employment, while in absolute terms, services would experience the largest gains in output and employment.”

That’s why ratifying USMCA is vital for Iowans now and in the future.  Our number one business sector in Iowa is advanced manufacturing. In fact, Iowa is one of the few states where the manufacturing industry still flourishes. Advanced manufacturing contributes $29 billion annually to the state’s economy.

Making everything from heavy-duty construction equipment, aerospace components to micro-plastics used in medical devices, Iowa’s more than 6,000 manufacturers are an important part of Iowa’s diverse economy.

They play a major role in the global marketplace — 86% of Iowa’s exports are manufactured goods.

A corn harvester on display at the John Deere pavilion of the Farm Progress Show Aug. 29, 2018, near Boone, Iowa.

Ratifying the USMCA would increase U.S. exports to Canada by 5.9% to $19.1 billion, and shipments to Mexico by 6.7% to $14.2 billion. Imports from Canada and Mexico would rise by 4.8% and 3.8%, respectively.

Iowa’s global competitiveness and our overall ability to engage in productive economic diplomacy is directly linked to USMCA. We need the new protections for U.S. intellectual property within this agreement to ensure more trade in services. 

Doing so further provides stability to innovative Iowa start-ups and technology-driven companies seeking to do business overseas.

It’s also essential that food and agriculture trade in North America is modernized. Iowa’s farmers and agribusinesses are the backbone of our economy. Agriculture and its related industries pump $112.2 billion a year into our economy and create one of every five jobs in the state.

For the first time ever, through USMCA, we finally have an agreement which addresses agricultural biotechnology to encourage 21st century innovations in agriculture.

Lastly, USMCA is vital for creating more balanced, reciprocal trade that results in sustaining quality jobs for Iowans, empowering rural communities, and ensuring prosperity for the next generations.

More:Iowa farmers like U.S. deal with Canada, Mexico, but question when tariffs will be lifted

So, I urge Iowans to join me in contacting Congress and insist that they find common ground to work with the president and ratify this crucial agreement with Canada and Mexico.  Take action today by calling or emailing Congress and its leaders.

Failure to ratify USMCA this year would be catastrophic for our economy and jeopardize future trade agreements.  We need Congress to act now!

Kim Reynolds of Osceola is the 43rd governor of Iowa.

Gov. Kim Reynolds speaks at the Iowa State Capitol Building Oct. 18, 2018.