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New trade deal could benefit MI dairy farms

05 October 2018
New trade deal could benefit MI dairy farms

Farmers and agriculture groups are digging through the details of the new North American trade deal, called the United States Canada Mexico Agreement, and some are raising concerns that clash with the celebratory mood of the three countries' leaders.

With the U.S. having access to the Canadian market but not vise versa, den Haan says Canada will become a dumping ground for excess milk from the States. "We are waiting for and explanation as to how this is considered support to us".

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

De Jong said the deal may mean he chooses to milk fewer cows in order to make up for the possible financial hit he expects to incur from the trade deals. Now that there's a deal, they should be able to "back out of this with their dignity intact". The new agreement (called the United States-Mexico-Canada Agreement, or USMCA for short) will create winners and losers, of course, and the general consensus is that the U.S. did quite well, while Canada took some losses.

This new agreement will give American dairy farmers more access to the Canadian market, US drug companies can fend off generic competition for a few more years and automakers are under pressure to build more cars where workers earn decent wages.

Bickford said dairy in ME is a $500 million per year industry. "The illegal steel and aluminum tariffs imposed by the USA 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.

"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. "That agreement will affect Canadian jobs I think in the long term".

Morneau says that's slightly higher than the 3.25 per cent that was agreed to under another deal - the Comprehensive and Progressive Agreement for Trans Pacific Partnership - with 10 countries including Mexico, Japan and Australia.

He says the province does $389 billion worth of trade per year with the U.S.

"This change in this agreement will open up those markets and allow us to compete again very effectively", said Scott Higgins, CEO of the Ohio Dairy Producers Association. "And it's an agreement that will be profoundly beneficial for our economy, for Canadian families, and for the middle class", Trudeau said. "We hope the agreements with Mexico and now with Canada lead to further easing of trade restrictions".

"Manitoba deeply values its trading relationships", Pallister said in a statement on Monday. "This is the first time we are seeing measures like this in a trade agreement". These grocery store sales were very important to local wineries, particularly small operations, but this may be in jeopardy if sales of wines from huge United States companies are allowed alongside Canadian wines.

Time will tell to what extent the USMCA helps US workers and boosts our economy. The NDP has always been against Chapter 11-type provisions in trade deals for those reasons. One letter promises Canada will be exempt from any future USA tariffs imposed on automobiles and auto parts as a matter of national security. It was about other markets, too.

Bruce Sargent says the new trade agreement effectively gives away four per cent of all future business to the U.S and worries it could put some of his peers out of business.