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Economist says no USMCA ratification might lead to recession

An ag economist says while many are focused on getting a trade deal with China, he’s concerned about something else. 

Dr. David Kohl from Virginia Tech tells Brownfield getting the new USMCA agreement ratified is vital. “This ratification of the agreement, if it doesn’t happen, it could push us into a recession.”

Kohl says not ratifying the USMCA would cause problems in supply chains in addition to reducing agricultural sales. “What you would see is inflation, and you would see shortages, and eventually this would come back to hit the farmers, but it would also come back to hit the consumer. There will be some unhappy campers.”

Kohl tells Brownfield having USMCA ratified would also stabilize energy prices. “We’re the number one energy producer. Canada is number four and Mexico is number eight. When we’re unified, it gives stability of energy prices throughout the world. “

Kohl discussed trade, economics, and management at the Professional Dairy Producers Business Conference in Madison, Wisconsin.

Listen to Brownfield’s interview with Dr. David Kohl here: