Wnited States Senate WASHINGTON, DC 20510 April 11, 2018 ‘The Honorable Robert Lighthizer USS. Trade Representative Office of the U.S. Trade Representative 600 17" Street, NW Washington, DC 20508 Dear Ambassador Lighthizer: As negotiations over the North Atlantic Free Trade Agreement (NAFTA) enter a critical stage, ‘we write (o you today to highlight the importance of a do-no-harm approach for Virginia’s agriculture producers and the national agricultural economy. In the face of an increasingly volatile global trade environment, we believe itis necessary to reiterate the importance of maintaining the core components of NAFTA for our agricultural community. In Virginia, agriculture and forestry remain the largest private industries, accounting for a combined economic impact of $91 billion annually and providing more than 442,000 jobs. Each job in the agriculture and forestry sector in Virginia supports nearly two additional jobs elsewhere in the economy. Production agriculture alone employs $4,000 Virginians and accounts for more than $3.8 billion in economic output for the Commonwealth. Almost 10 percent of Virginia's gross domestic product (GDP) is directly tied to agriculture and forestry. ‘The continued success of Virginia’s agriculture economy is in part due to the expansion of the global marketplace over the last several decades. Since the implementation of NAFTA, Virginia agriculture producers have witnessed tremendous growth in the number of exports to both Canada and Mexico. From 1996 to 2016, Virginia’s agriculture and forestry exports to Canada grew by 400 percent, from $58.4 million to $296.5 million. Exports to Mexico grew even faster during this time period, from $7.9 million to $113.6 million — an increase of over 1,300 percent, Today, Canada and Mexico represent Virginia’s first and third largest export markets, respectively. While NAFTA has benefitted American agriculture producers, there are areas in which it can be improved. For example, under NAFTA, U.S. poultry exports have faced significant barriers in gaining access to the Canadian marketplace. Strict quotas and high tariff’ implemented by the Canadian government have prevented American poultry producers from fully reaching this, lucrative market. I am pleased this issue of market access was included in USTR’s negotiating objectives for NAFTA, and we look forward to continuing to work with you to expand opportunities for our agriculture community. Throughout the negotiation process, we have been concerned by President Trump’s repeated threats to withdraw the U.S. from NAFTA, along with other protectionist trade policies being pursued by the Administration, Withdrawal from the agreement would have devastating consequences for the U.S. economy that would affect each state and nearly every job sector. A recent study predicted that if the U.S. left NAFTA, 1.8 million to 3.6 million jobs would be lost, in the following years. In Virginia alone, 46,000 to 96,000 jobs could be at risk if the U.S. exitedthe agreement, Thousands of these job losses would include farmers and workers in other agriculture and forestry-related industries across the country. We are supportive of efforts to modernize NAFTA, including updating labor protections to reflect the May 10 Agreement and improving environmental protections, However, actual withdrawal from NAFTA would seriously destabilize the integrated supply chains that have taken decades to establish and imperil the livelihoods of thousands of Virginians and millions more across the U.S. As NAFTA negotiations progress, we ask that you pursue a do-no-harm approach to modernizing free trade agreements and supporting the agriculture economy in Virginia and throughout our country. We look forward to working with you to ensure that our farmers have access to the global marketplace. Thank you for your attention to this matter. We look forward to hearing from you, Sincerely, Moh. © Wve Jar JZ, MARK R. WARNER TIM KAINE United States Senator United States Senator CC: The Honorable Sonny Perdue, Secretary, U.S. Department of Agriculture ‘The Honorable Wilbur Ross, Secretary, U.S. Department of Commerce