Cash, cuts and confusion; Trade deal spurs Canadian dairy fears

05 October, 2018, 08:16 | Author: Salvatore Jensen
  • Justin Trudeau speaks during a news conference at U.N. headquarters during the General Assembly of the United Nations in New York

Specifically with regard to the dairy industry, he said, Canada's pricing program has created an unfair playing field and has essentially eliminated USA exports of certain dairy products, harming Western New York's dairy industry.

The U.S. has large annual surpluses in they're dairy production, and gaining more entrance into our market will give them a place to move and store their products. The new agreement will eliminate a program in Canada which limited certain kinds of imports.

"The price of milk, the price of product, there has been no movement on this news", he said.

The National Pork Producers Council is applauding a new Canada U.S. and Mexico free trade agreement.

"We just gave away four per cent of that business forever to the USA and we got nothing in return", said Bruce Sargent.

Above that level, USA dairy farmers will still face Canada's punishing tariffs.

He said that there is "no political necessity to keep Canada in the new NAFTA deal". With the new deal, none of the countries that are part of the agrement will be able to import as many parts from overseas, and Robertson says this could make it hard for auto companies to keep consumer prices down. "The illegal steel and aluminum tariffs imposed by the United States earlier this year should have been lifted with this agreement, and I urge the Canadian government to redouble its efforts to eliminate these tariffs", he said.

Canada's supply-managed system controls the production and price of milk and poultry and ensures stable incomes for Canadian farmers.

Egg farmers in Canada are unhappy with the terms of the company's new trade deal with the US. "Until those tariffs come off, farmers won't see the full benefit of the new U.S. -Mexico-Canada agreement".

Since talks began more than a year ago, it was clear that Canada and Mexico would have to make concessions in the face of Trump's threats to tear up NAFTA, and relief was palpable in both countries on Sunday that the deal was largely intact and had not fractured supply chains of weaker bilateral agreements. "I can certainly see the Canadian dairy farmers' side of this".

Monroe says the USA pork sector has been in expansion mode but the uncertainty we've seen around exports over the past year has inhibited investments. "And this agreement appears to have some positive things in it", said Jim Holte, president of the Wisconsin Farm Bureau Federation.

O'Connor said the USA needs an incentive for individual farmers not to overproduce, much like Canada's quota system.

"We applaud the three governments for working to modernize the agricultural chapters in the agreement", he said.

Freeland said they will be compensated for their losses. But the final details of that are likely to be kept under wraps until the new deal is ratified by all three countries.

He also praised keeping dispute resolution panels, an exemption for Canadian cultural industries which "prevent the United States from taking control of the media sector in Canada".



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