New Trade Deal to Benefit Dairy Farmers

Randal Sanchez
October 5, 2018

"We weren't at the table or maybe the deal would have been a little different".

The agreement reached would allow United States farmers greater access to the dairy market of Canada. "We are waiting for and explanation as to how this is considered support to us". The Canadian Class 7 pricing system, a long-time stumbling block, will be eliminated.

"Mexico is our largest apple export market, it's our largest pear market". Wiens said. "There's a lot of frustration out there".

"Not only should we demand the highest possible labor and environmental standards, but ensure they are fully enforceable - a standard which many of our past trade agreements have not met", said Kind, D-La Crosse.

"We are grateful for the progress with Mexico and Canada, and we look forward to working with the Administration to strengthen new and existing opportunities for agricultural trade across the globe".

This new deal will open up Canadian markets for our dairy farmers, eliminate certain tariffs, and eliminate Canada's protectionist trade policies related to ultra-filtered milk that targeted Wisconsin dairy producers.

Dairy was another sticking point, but Canada agreed to changes there as well.

In a global market awash in dairy products, prices have skidded, and many USA farmers have burned through their savings and farm equity to remain in business. Higgins says OH dairy farms bring 650 million gallons of milk and other dairy products to market every year.

"It basically, kind of blocked off the US and other countries from exporting products like ultra-filtered milk or like, protein powders from milk into Canada, and kind of protected the Canadian ultra-filtered milk market", Williams said. Younger farmers are wondering if this will affect their industry long term.

He said if Congress approves this deal, only multinational agribusinesses like Cargill or JBS will be able to lodge trade complaints, such as accusing one of the countries of unfairly subsidizing its farmers.

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The new deal, which still needs to be ratified by all three countries, appears to preserve the key dispute-resolution provisions - Chapter 19 - which allow for independent panels to resolve disputes involving companies and governments, as well as Chapter 20, the government-to-government dispute settlement mechanism. "This is the first time we are seeing measures like this in a trade agreement".

"It's an agreement that, when enacted, will be good for Canadian workers, good for Canadian business, and good for Canadian families".

The new agreements leave in effect Canadian and Mexican retaliatory tariffs on farm goods imposed after the USA placed tariffs on steel and aluminum imports.

Canada is linked again with the USA and Mexico in a revamped North American free trade deal after weeks of negotiations.

KIRWAN: And some American farmers are starting to question whether the new trade agreement will really be all that helpful. Like other provinces and territories, Manitoba has worked to build enduring relationships at the American state level.

Bullard said the labeling system is deceptive to consumers who think they're purchasing a USA -made product.

The leader of the National Democratic Party of Canada, Jagmeet Singh dubbed the deal as a worse deal than NAFTA and stated that the Canadian government should get a better deal.

A side letter published along with the main text of the agreement exempts a percentage of eligible auto exports from the tariffs. This decision will stifle innovation, stunt market growth, and create additional losses for those dairy processors who have made significant capital investments recently to improve Canada's domestic processing capacity.

President Trump says steel and aluminum tariffs on Canada and Mexico will remain in place for the foreseeable future, leading both Mexico and Canada to retaliate with tariffs of their own. He said it will protect Canada from an unfair American tariffs.

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