Michigan’s dairy industry sees benefit in new US-Canada-Mexico trade deal
Under the Comprehensive and Economic Trade Agreement (CETA) with the European Union, Canada granted new access for almost 18,000 tonnes of cheese.
Ford says, “During the negotiations, we made it clear that any deal must keep Ontario’s steel, aluminum, auto and agriculture industries top of mind”.
Canada, which was expected to be isolated from the North American Free Trade Agreement (NAFTA), has agreed to sign a deal with the United States and Mexico, on Sunday night. On Monday, Trudeau pledged to compensate farmers to cushion the blow. “The unfortunate part is that in reality it is not the solution that the United States dairy farmers need”.
The USMCA would remove an irritant in the cross-border grain trade with a provision under which Canada would grade imported US wheat on an equal standard with domestic wheat. The U.S. failed to achieve its goal of eliminating Canada’s supply-management system for dairy, poultry, and eggs. Her almost 500 cows produce milk that is shipped within the US and internationally.
The revamped NAFTA deal – dubbed the United States-Mexico-Canada Agreement, or USMCA – was nearly 14 months in the making and has 32 chapters, 11 annexes and 12 side letters.
“Dairy farmers are falling on the sword for the national interest”, said Trevor Hargreaves of the B.C. Dairy Association.
The measures will have a “dramatic impact” on dairy farmers and cause the industry to shrink, said Pierre Lampron, president of Dairy Farmers Canada, in a statement.
If cheaper products than what’s available in Canada come in on the wholesale market, said Mussell, grocers will just eat less of a loss on their dairy promotions or loss leaders. That means that hopefully, they’ll be able to sell more of their product.
“We had a NAFTA deal that was working reasonably well so we will call it a win because we were able to retain the key parts of the existing NAFTA deal in terms of our access to the USA market”.
Yet that is less than half a per cent of total American production.
“Including, milk, butter, cheese, yogurt and ice cream to name a few”. Some of those farmers complained that they couldn’t export to Canada, even though that might only be a temporary fix for their production problems.
In the new deal, Canada agrees to give a greater market share to US dairy farmers. Asked what China needs to do to resolve USA complaints, Trump said, “We’ll have to see what happens with China”.
But good news for the pharmaceutical industry could be bad news for users of the drugs and for government policymakers trying to hold down health-care costs.
The organizations said they plan to continue reviewing the proposed agreement as it works through the process. Every time there’s a deal there’s a little more access given.
“That was my fear from the beginning. This is quite a give by Canada”, Mr. Mussell said.
The Canadian government was prepared to be flexible on dairy as they weren’t going to allow a full dismantling of the nation’s supply-managed system, said Ian de Verteuil, head of portfolio strategy at CIBC Capital Markets. Perhaps because of this record, the US repeatedly said they wanted to get rid of Chapter 19.
Still, trade attorney Daniel Ujczo of the Dickinson Wright law firm said that “the USA dairy industry seems happy. for now”.
“I know we’re taking one for the team, but I hope the rest of the team can stand up and help us out here”, Ruiter said. “You saw yesterday that auto part companies, all their shares went up as they saw a greater sense of optimism”.
Canada has vowed to provide compensation for dairy farmers but details are not yet known. A 2016 report from the Brookfield Institute for Innovation and Entrepreneurship estimated that, of the 864,000 tech jobs in Canada, 286,000 were in Toronto alone. “There were compromises made on supply management that will hurt our agricultural producers”.
“Most Canadians blame the American administration for the mess we’re in, and I think Justin Trudeau will be recognised for saving the furniture”, he added.