New trade pact will not hamper deals with China insists Canada

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Dairy was a big sticking point for Canadian and United States officials as they renegotiated NAFTA.

"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. "It's a slap in the face to Canadian producers who work very hard at managing supply".

The trade deal recently announced between Mexico, the United States and Canada will allow dairy farmers more access to the Canadian market.

Canada's new trade deal with the United States and Mexico is not siting well with one local dairy producer.

Martin operates Gingrich Meadows Dairy in Osceola County.

Both Freeland and Trudeau said it's important to remember that when the negotiations began over a year ago the USA aim was to dismantle supply management entirely, and Canada did not let that happen. One letter promises Canada will be exempt from any future USA tariffs imposed on automobiles and auto parts as a matter of national security.

"Supply management is dying a death of a thousand cuts", said James McIlroy, a Toronto-based trade lawyer and consultant.

But how happy is the United States going to be the day it decides that it is ready to pursue a trade deal with China (the kind of about-face that would be entirely in character for the mercurial Mr. Trump), and Canada and Mexico point to the non-market clause to demand seats at the table?

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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. Canada's concessions will total 3.59 per cent, according to Wiens.

The federal government has pledged to compensate dairy farmers for their losses, Carr pointed out.

"The dairy industry in Canada has been repeatedly used as a bargaining chip for our government's trade aspirations".

Dietrich said this is going to not only impact farmers but also consumers who will see less Canadian dairy products in stores. "The combined access given under the European Union trade agreement and with the transpacific countries alone already equated to $250 million dollars annually in lost milk production here at home, which ultimately benefits dairy industries in other countries". That means that hopefully, they'll be able to sell more of their product. The Dairy Farmers of Canada objected to this, but the once-obscure dairy classification had become a lightning rod of discontent for U.S. President Donald Trump.

Yet that is less than half a per cent of total American production. The commission sets support prices for butter and skim milk powder, which provinces use as a reference to establish provincial prices for industrial milk. Still, dairy is a tiny part of the $500 billion in goods the nations trade annually.

Meanwhile, under the yet-to-be implemented CPTPP agreement, Canada gave up access in all five supply-managed sectors: 3.25 per cent more access in Canada's dairy market, 2.3 per cent more for eggs, 2.1 per cent for chicken, two per cent for turkeys, and 1.5 per cent for broiler hatching eggs - a concession that had largely been earmarked for American product under the TPP. Asked what China needs to do to resolve USA complaints, Trump said, "We'll have to see what happens with China".

With a Quebec election on Monday, the new government, expected to be a minority, will play a considerable role as the majority (60 per cent) of Quebec's agriculture industry falls under supply management. "We need to review and resolve the details of the agreement when they are available to be sure that this agreement truly ends NAFTA's legacy of shuttered factories and low wages".

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