Committee To Shape Farm Trade

Why it Matters

With U.S.–Mexico agricultural negotiations already underway ahead of a June 16–17 round in Washington, the first mandatory United States–Mexico–Canada Agreement (USMCA) review is due July 1, 2026, just 21 days after the House Agriculture Committee’s Wednesday, June 10 hearing. Congress has a narrow window to shape what American negotiators bring to the table on behalf of farmers, ranchers, and agricultural exporters.

The United States Trade Representative has signaled it is not prepared to recommend renewal without changes, injecting uncertainty into markets that depend on the agreement's stability. For the agricultural sector, which conducts hundreds of billions of dollars in annual trade with Canada and Mexico, the outcome of this review will reverberate across commodity markets, supply chains, and farm incomes for years.

The Big Picture

Under Article 34.7 of the USMCA, the three signatories are required to convene on the sixth anniversary of the agreement's entry into force, July 1, 2026, for the first formal Joint Review. At that meeting, each party signals whether it wants to extend the agreement for another 16 years or propose modifications. The bilateral negotiating rounds that the U.S. and Mexico launched in late May are already moving without Canada at the table.

The first bilateral round took place May 28-29 in Mexico City, focused on economic security and industrial rules of origin. A second round, scheduled for June 16-17 in Washington, is specifically set to address agriculture and what the USTR has described as ensuring "a level playing field." A third round is planned for the week of July 20 in Mexico City. The House Agriculture Committee hearing on Wednesday, June 10 was positioned to allow members to hear from stakeholders and establish congressional priorities before the agriculture-focused negotiating round begins.

Several long-running disputes are expected to dominate the review, and agricultural groups have been pressing Congress and the administration to address them. Forty national farm and agricultural organizations have formed the Agricultural Coalition for the United States-Mexico-Canada Agreement, co-led by the National Milk Producers Federation and the U.S. Dairy Export Council. The coalition's formation reflects broad industry concern about the review's outcome and represents organized pressure on both Congress and the administration to protect farm interests in the negotiations.

What's At Stake

For Mexico

Mexico's restrictions on genetically modified corn have been a central issue. The Baker Institute for Public Policy has urged the U.S. to seek a firm guarantee that Mexico will not restrict imports of GMO corn or other GMO grains, and to press for full compliance with Chapter 3 of the USMCA, which covers agricultural biotechnology. The dispute has implications for U.S. corn growers, who export significant volumes to Mexico and rely on the agreement's provisions to protect market access.

For Canada

Canada's supply management system for dairy, poultry, and eggs remains a persistent source of friction for U.S. agricultural exporters, particularly dairy producers who have long argued that Canada's import quotas and pricing structures undercut the market access promised under the agreement. Seasonal competition from Mexican produce has also been flagged by U.S. fruit and vegetable growers as an issue warranting attention in the review.

For U.S. Farm Groups

The American Farm Bureau Federation has described the review as an opportunity to improve agricultural trade conditions, framing it as a chance to address longstanding grievances rather than simply renew the status quo. The National Corn Growers Association has been more pointed, urging renewal and warning that the agreement has been foundational to export growth in the corn sector.

Worth Noting

The USDA projected a $29 billion agricultural trade deficit for fiscal year 2026, with exports estimated at $174 billion against imports of $203 billion. That gap, while an improvement from earlier projections, underscores the competitive pressures U.S. agriculture faces and adds weight to calls for stronger enforcement of existing provisions.

The Bottom Line

G.T. Thompson Jr., who chairs the House Agriculture Committee, will lead the hearing alongside Ranking Member Angie Craig. The full committee will convene at 2:00 p.m. on June 10 in 1300 Longworth House Office Building.

The USMCA agricultural hearing gives the committee a formal venue to establish congressional equities in the review before the administration's negotiators sit down with their Mexican counterparts on agriculture later that same week. With USTR Greer having told congressional committees that he is not prepared to recommend renewal without changes, the question before the committee is not whether the agreement will be renegotiated in some form, but what agricultural priorities Congress will demand be addressed before any extension is approved.

For American farmers, the answers coming out of this hearing and the subsequent negotiating rounds will determine the terms under which they access their two largest export markets for years to come.

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