Sunday, 21 October, 2018

Canada dairy farmers unhappy after meeting Trudeau on trade deal

Prime Minister Justin Trudeau leaves the Office of the Prime Minister and Privy Council after an agreement was reached in the NAFTA negotiations in Ottawa Ontario Sept. 30 2018 Trump: Trade deal returns US to ‘manufacturing powerhouse’
Jodi Jackson | 05 October, 2018, 13:15

"It is a great deal for all three countries, solves the many ... deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduces Trade Barriers to the USA and will bring all three Great Nations together in competition with the rest of the world".

"Anything you submit to Congress will be trouble", he said.

The DFC said their industry contributes $20 billion a year to Canada's gross domestic product.

Pena Nieto will be replaced by President-elect Andres Manuel Lopez Obrador, whose incoming administration said the deal would offer more certainty for financial markets, investment and job creation. Producers are right to be dissatisfied.

There are skeptics, however, as to how much this deal will do as long as China does not budge on tariffs it is imposing on the U.S. It will be called the United States-Mexico-Canada Agreement or USMCA.

"I'm concerned about the effects on dairy because our region has a large dairy industry, certainty in Temiskaming as well as Timmins", said MP Charlie Angus (NDP - Timmins-James Bay).

"Our government will continue to vigorously defend and advance Ontario's economic interests", Ford said.

The deal will preserve a trade dispute settlement mechanism that Canada fought hard to maintain to protect its lumber industry and other sectors from US anti-dumping tariffs, Canadian sources said.

The new agreement would end the discriminatory pricing and restrict Canadian exports of dairy powders. For many products, the tariffs are below 10 per cent until a certain threshold of imports is reached.

Canada, the United States' No. 2 trading partner, was left out when the US and Mexico reached an agreement last month. Still, a good enough deal is better than no deal.

"In this country, we produce the safest and most affordable food in the world and were good at it. At some point this does not make sense for Canada".

Co-owner Pat McCormick believes the change will help his sixth-generation family farm rebound.

"The government cannot treat one sector of the economy that's affected by this in a preferential way and not offer the same type of support for another sector", he said.

Supply management works in two ways. Maxime Bernier split from the party last month to launch his own entity, calling the Conservatives "intellectually and morally corrupt" in part because of its support for dairy protections. "Kansas has over 100,000 NAFTA-reliant jobs, and we export nearly three to four times more to Canada or Mexico than to China". The group criticized the deal Monday.

While increased demand is good for every dairy farmer, big farms who sell to co-ops stand to see the biggest impact.

Trump had threatened to switch to bilateral trade pacts with Mexico and Canada, but Washington and Ottawa managed to iron out differences on Sunday, keeping the deal trilateral.

"I think for some small producers, it could be the difference between being profitable and not".

"The government had promised it would protect the Canadian dairy industry", said Gourlay.

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