Published: Fri, October 05, 2018
Money | By Hannah Jacobs

Trudeau says dairy industry deserves compensation after trade deal

Trudeau says dairy industry deserves compensation after trade deal

The USMCA was announced late last night, fulfilling a promise President Trump made to farmers to eliminate Canada's unfair Class 7 milk-ingredient pricing program. "Now they're going to be treated with respect". "Rather, along with CETA and CPTPP, the commitments Canada has made under USMCA significantly undermine its domestic dairy sector".

"We recognize the symbolism of the gesture of Prime Minister Trudeau in offering to meet with our industry to hear our concerns firsthand", he said in a statement.

When asked if he sympathized with the Canadian farmers' position, Higgins said, "We have a world to feed, and the United States has a tremendous capacity to produce milk, and we have a great product to market internationally. Versus a very unpredictable and protectionist US administration, I think Canada did as well as it could".

In a global market awash in dairy products, prices have skidded, and many US farmers have burned through their savings and farm equity to remain in business.


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. The plan to compensate the supply-managed farmers stalled when the United States withdrew from the TPP in 2017. "The net impact has been zero".

"Dairy farmers across the country have faced challenges with those trade deals".

Trudeau noticeably did not mention U.S. President Donald Trump in his opening remarks, saying only in answer to a direct question that the relationship with the president has been challenging during the course of negotiations. "But they are part of it", he said. That dairy portion was a big sticking point in negotiating with Canada about their complex dairy tariff system, and the changes are drawing praise from Ohio's dairy industry.

According to US figures, America exported about $600 million worth of dairy products duty-free to Canada past year - over three times what it bought from here - but anything above that is subject to tariffs of up to 300 per cent. A similar agreement between Mexico and the USA preserves duty-free access to the US market for vehicles that comply with the agreement's rules of origin. He has repeated the complaint often since, threatening to punish Canada with devastating automobile duties. Many in the dairy industry said Monday that expanded access from the U.S.to Canada's supply will be detrimental to local markets. Overall, the deal would grant the States the ability to export an additional 100,000 metric tons or so of various dairy products here.


The U.S. Department of Agriculture did away with the regulation in 2015 after persistent complaints from Canada and Mexico.

The general sentiment among manufacturers is one of relief, said Dennis Darby, president and CEO of Canadian Manufacturers & Exporters.

A spokesperson for National Bank of Canada - a major lender to the agricultural sector - said that "while we expect an impact" from the new trade agreement, the bank believes clients will adapt and doesn't expect "any noticeable impact" on its loan book.

Bickford said dairy in ME is a $500 million per year industry.


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