Ron Estes: Americans will benefit from more free and fair trade
Trade is vital to Kansas’ economy, and especially the 4th District. Wichita is not only the Air Capital of the World; it is also home to many of our state’s leading farmers, ranchers, manufacturers and small businesses. Getting trade right has major implications for our families and workers.
That’s why I was so encouraged that the U.S.-Mexico-Canada Agreement (USMCA) went into effect this summer, bringing our three nations’ trade practices into the 21st century. The agreement opens new markets and opportunities for our farmers, ranchers and innovators while ending unfair trade practices that had persisted too long.
In Congress, I serve on the House Ways and Means Committee that oversees trade. I also had the privilege of serving on the USMCA whip team that led the effort to secure passage of the agreement in the House of Representatives, and I attended the White House signing ceremony for the agreement.
The USMCA is expected to create nearly 600,000 new jobs and boost our Gross Domestic Product by $68 billion. Trade with Mexico and Canada supports 12 million jobs in the U.S., including 110,000 in Kansas. This agreement will protect those jobs and enable us to add even more.
The USMCA includes a number of specific provisions that are important to south central Kansas.
For instance, U.S. wheat is now treated more fairly. The agreement requires Canada to grade our wheat no less favorably than its own. Canada also eliminated its “Class 7” program that allowed low-priced dairy ingredients to undersell American dairy products. Canada is now providing new access for American dairy products, eggs and poultry.
The agriculture provisions alone make the USMCA a significant step forward. Mexico and Canada are our first and third-largest export markets for American food and agricultural products. Ag-based trade with these countries supports more than 325,000 American jobs.
American manufacturers will also benefit from the agreement. Under the USMCA, American auto manufacturers and workers will benefit from new rules of origin requiring 75% of auto parts to be produced in North America. This provision will revitalize manufacturing across our nation at a time when we need economic growth.
The USMCA also helps our nation keep pace in a rapidly changing, global digital economy. For too long, NAFTA failed to keep up with technological innovation which led to offshoring and many manufacturing jobs leaving the United States. The new agreement provides stronger protection and enforcement of intellectual property rights.
Our district depends on global trade. The USMCA builds a good foundation of fairness, and I plan on working with my colleagues to build on that success. We still have important work to do to address China’s unfair trade practices. Sadly, previous administrations — both Democrat and Republican — have ignored China’s cheating. We need to hold China accountable and bring manufacturing and supply chains back to Kansas.
As we struggle to overcome and recover from a global pandemic, global trade agreements are more important than ever. In 2021, I look forward to securing additional agreements to open more markets around the world for Kansas products, which will help families and workers throughout our district.