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Dairy Farmer: Trump’s USMCA Trade Deal Will Have 'Huge Impact'

04 October 2018

Canadian concessions on dairy were also recently made with other countries in two other trade deals under the Trans-Pacific Partnership (TPP) and Canadian-European Comprehensive Economic and Trade Agreement (CETA).

He says that while he's optimistic the United States-Mexico-Canada Agreement will create opportunities, he's anxious about the impact on Ontario's agriculture sector.

Bickford said that although people think of milk as local, dairy is a global industry, and it's one that is particularly dependent on Mexico and Canada.

In 2016, Canada created the Class 7 pricing agreement that has essentially restricted US exports of the product.

Key Achievement: Expanded Market Access for American Food and Agricultural Products.

"We know full well the American administration targeted the complete scrapping of supply management and what we did with this agreement was to protect supply management for future generations because it is a system that works", Trudeau said.

The chairman of the New Brunswick dairy farmer says he woke up this morning with a pit in his stomach.

The USMCA makes fundamental changes to how imports are administered, and ensures continued stability for farmers, while guaranteeing the United States access to our market. If the USMCA is approved, it will be set for renegotiation in 16 years.

Senate Finance Chairman Orrin Hatch, R-Utah, said, "I am pleased that the Trump administration was able to strike a deal to modernize NAFTA with both Mexico and Canada". "Congress is on the ticket".

Trudeau spoke with reporters, along with Foreign Affairs Minister Chrystia Freeland after landing the major trade breakthrough last night, just before a US -imposed deadline. Trump said it was too early for negotiations with China. In the US, supply isn't limited artificially, so as producers make more milk, that puts a "burden on consumption and exports", he said. Tariffs are a negotiating lever, he told a reporter who asked if more U.S tariffs are likely.

"Once again, the farmers have taken the first hit".

Vancouver Island with its 40 dairy farms will "be milking less cows" and there will be fewer jobs in that sector as a result of the deal, he said.

"He traded us away", he said.

"Dairy farmers are falling on the sword for the national interest", said Trevor Hargreaves of the B.C. Dairy Association.

Dairy farmers, too, are angry with the concessions made to grant the U.S. more access to our market. This would have caused major damage to the economy and disproportionately affected Ontario, Canada's most populous province, which also tilted right in a June provincial election.

"This new deal will be the most modern, up-to-date, and balanced trade agreement in the history of our country, with the most advanced protections for workers ever developed", he said. "It is imperative that the US remains an integral player in driving the global trade agenda". These relationships can be critically important when we're faced with challenges in the broader Canada-U.S. relationship. USA wheat groups have complained that Canada now classifies their grain as lower-value, feed-quality wheat. This is going to hurt us farmers. Ron Bonnett, president of the Canadian Federation of Agriculture, said there is always concern from dairy farmers - or any other industry - when supply management commodities are changed or impacted. US drug companies can fend off generic competition for a few more years.

Ford says he's also concerned about steel and aluminum tariffs that appear to remain in place. "We're working on that now".

Murray Sherk, the Dairy Farmers of Ontario regional director for Oxford and Waterloo counties, said the deal - while still being reviewed by his organization - doesn't look good for Ontario's $1.8-billion dairy sector.

Dairy Farmer: Trump’s USMCA Trade Deal Will Have 'Huge Impact'