NY dairy farmers could benefit from new trade deal with Canada

NY dairy farmers could benefit from new trade deal with Canada

Peter Brown, general manager with SaskMilk says that despite reassurances from the federal government that dairy interests would be protected under the new trade deal, the terms of the new agreement say otherwise.

Dairy farmers across NY and Pennsylvania continue to struggle to meet costs. With the new deal, none of the countries that are part of the agrement will be able to import as many parts from overseas, and Robertson says this could make it hard for auto companies to keep consumer prices down.

"We hope the agreements with Mexico and now with Canada lead to further easing of trade restrictions".

"This a victory for Canada because that amount is actually well above what we now send south of the border". Since then, meat that is raised in Mexico and Canada can be labeled as a product of the USA, as long as it's slaughtered or packaged in this country.

Specifically with regard to the dairy industry, he said, Canada's pricing program has created an unfair playing field and has essentially eliminated USA exports of certain dairy products, harming Western New York's dairy industry.

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The new United States-Mexico-Canada Trade Agreement was announced late Sunday night after Canada chose to join the United States and Mexico in their previously announced agreement.

Canadian officials agreed to sign the agreement late Sunday before the midnight deadline.

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.

Much of a dairy farm's value is in milk quota, which is basically a proxy for one cow.

Williams said one positive for dairy farmers with the new agreement is that it will open the Canadian market to more exported American dairy products. For more information, contact CEO Laurie Fischer at 920-965-6070. Canada has used this provision to win most of the U.S. challenges to the export of Canadian lumber. “USMCA will include the development of new safeguards to prevent major export increases for certain dairy products.”.

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Canadian dairy, egg and poultry farmers will continue to benefit from supply management for the time being, but experts say there is no doubt that the system has been weakened by USMCA and the European Union and TPP trade deals. And that hurt competition from USA imports.

Morneau said in his earlier speech that Canada is looking to create tourism, education and financial-service opportunities with countries such as China as it works to expand its oil and gas industry to foreign markets with the building of the Trans Mountain pipeline. Any dairy imports above the 3.6-per cent threshold still face Canada's punishing tariffs, which were a sticking point in negotiations with the U.S.

Also, steep tariffs that Trump imposed in May on steel from Canada and Mexico are still in effect; Robertson says Canada was hopeful the trade agreement could help change that. He says it's not yet clear what benefits will come out of this new agreement.

Meanwhile, Interim Liberal leader John Fraser said Canada should not jump to head back to the negotiating table.

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