NY dairy farmers could benefit from new trade deal with Canada

Fredrick Soto
October 5, 2018

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.

"This has been a very bad time to be a dairy farmer", Shoemaker said.

The new quotas are expected to give American dairy farmers access to up to 3.6% of Canada's market. Canada's agreement to free up another 3.6 per cent of its milk market to Americans will do relatively little to lessen those troubles, they said.

"At the end of the day, this is not a trivial thing".

However, according to the Michigan Department of Agriculture and Rural Development's Dairy Division, the state lost 143 dairy farms past year.

Political science instructor at Medicine Hat College Jim Groom said these concessions were made because Canada wasn't willing to budge on a more profitable industry such as the auto sector.

In Quebec, meanwhile, politicians lamented that its key dairy sector was paying the biggest price in order to get a deal. "We will make sure that we protect our economy, our jobs, and the people of Ontario".

Negotiators worked frantically ahead of a United States imposed midnight deadline to settle differences, with both sides making concessions to seal the deal. 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 classification was introduced in March 2017 as a way for Canadian producers to keep input costs artificially low. The labor provisions are good, but too often they are written into trade bills and never enforced.

Morneau says Canada is working to ensure producers are protected from potential diversion of steel and aluminum from other countries while also balancing the needs of users.

While touting USMCA as a good deal for Canadians by securing access to its largest trading partner and the largest market in the world, Trudeau acknowledged farmers' sacrifices.

"We're all happy NAFTA negotiations have concluded". It will also eliminate its tariffs on whey and margarine.

Brown said dairy producers have never looked for compensation, or "a handout" from government, but said that will likely be part of the discussion moving forward.

As the clock approached midnight Sunday, word began to spread that Canada was ready to sign on the dotted line of the new trade agreement with the US and Mexico. The change is similar to a provision in the Trans-Pacific Partnership, the trade pact canceled by the Trump administration, according to Ohio State University professor Ian Sheldon.

Dairy farmers on the Island and across Canada feel as if they were thrown under the bus when the country signed on to a new free-trade deal with the USA and Mexico.

"The concessions amount to very small increases in the quantity of products that could come into Canada without facing the high border taxes that are in place", said Cardwell. "I can certainly see the Canadian dairy farmers' side of this".

But he said he'll need more information to determine if it will have a tangible impact on overall demand and prices, noting the lack of reaction this week from the US milk market.

Trump has approved the deal with Canada, a source familiar with the decision said.

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