Washington dairy and the USMCA

The overhauled North American Free Trade Agreement, now named the United States-Mexico-Canada Agreement, or USMCA, which is expected to be ratified next year, will accomplish some important objectives for USA agriculture.

The Vice-President of the Canadian Global Affairs Institute is confident a new trilateral North American trade agreement will help bolster investor confidence in Canada.

The trade deal would govern trade relations among the United States' neighboring trade markets, remove a significant obstacle for USA dairy products entering Canada and would give American dairy farmers a slightly larger slice of the Canadian dairy market.

"The U.S.is going to get all its partners to gang up on China, but it's clear that Canada did this because there was a gun to its head", said Mary Lovely, an economics professor at Syracuse University who studies trade issues.

If the tariff-for-tariff tradeoff between the United States and China resembles a mere scuffle, multinational investment bank J.P. Morgan expects it to escalate into a full-blown trade war.

Mexico also applauded the agreement.

The Dairy Farmers of Canada say they failed to see how the trade deal would be good for the 22,000 Canadian families that depend on dairy for their livelihood.

"To put it bluntly, President Trump's leadership is working; China wants a different American President", Pence added.

Adamski said the biggest problem with u-s milk production is overproduction depressing prices. In May, a pound of bagged milk could cost one dollar but might be $1.25 per pound a month or two later.

He said Canada produces milk to supply the domestic market and uses the supply management system to balance it and to make sure there is the proper amount of milk that is produced for Canadian consumption.

Nonetheless, the US got its way, forcing Canada to yield a larger market share for American dairy farmers.

The USMCA also subjects Canada's dairy industry to stiff export caps on certain dairy products, including skim milk powder and infant formula.

"TPP, the Asian agreement, and the European agreement, we're down 10 per cent in the a year ago, so, it's the number of cows but it's also, our net income is down 10 per cent".

Mr. Wilson raised questions about increasing access to Ontario's dairy market, the remaining steel and aluminum tariffs and a clause that places restrictions on Canada's bilateral trade deals with "non-market" economies such as China.

Pence also said China's navy engaged in "reckless harassment" this week when a Chinese naval vessel came within about 40 meters of a USA ship in the South China Sea.

She said the state dairy market may grow with the new trade agreement. The vice president said a senior American intelligence official told him "what the Russians are doing pales in comparison to what China is doing across this country".

Trade autonomy: one more alarming concession that has many concerned in Ottawa is language that may restrict Canada's ability to negotiate a trade deal with a "non-market" country, for example, China.

According to the Liberals' statement, the resulting agreement offers crucial predictability and stability for Canadian businesses, investors, traders, workers and innovators.

Clarke Gourlay of Parksville' Morningstar Farms said the deal increases the insecurity of the industry.

  • Leroy Wright