Prime Minister pledges compensation for dairy farmers hit by USMCA deal
05 October, 2018, 13:16 | Author: Teresa Adams
Manufacturers of durable goods like washing machines could benefit and OH dairy farmers- who have little access to Canadian markets-will get a little more help in this deal.
Terminating NAFTA outright, they wrote, "could potentially shrink the economy by up to 1.2 percent annually and reduce net US employment by as many as 3.6 million jobs, while forcing higher costs on working families".
Dairy farmers across the Maritimes say the trade agreement will not only limit their exports, but that the quality of milk produced in the USA just isn't comparable to what is produced in Canada because of our higher standards. "That to me really hurts". We are doing the calculations now.
Embracing the U.S. -Mexico-Canada Agreement during a Rose Garden ceremony, Trump branded the trade deal the "USMCA", a moniker he said would replace the 24-year-old North American Free Trade Agreement, or NAFTA. Canada has levied tariffs on a range of USA imports, including steel and aluminum.
The agreement reached Sunday gives US farmers greater access to the Canadian dairy market.
"This is a very, very big deal for our farmers".
"I want to start by saying to dairy farmers that compensation is justified. They were the sacrificial lambs". "However, the absence of details on measures to mitigate the impact of the concessions made within the USMCA, as well as the absence of a vision for the future of our industry at this time, can not appease the concerns of the dairy farmers".
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"The deal includes a substantial increase in our farmer's opportunities to export American wheat, poultry, eggs and dairy", Trump told a news conference outside the White House Monday.
"This is eight to 10 per cent of the market".
Stan Van Keulen is a dairy farmer in Surrey.
But the region's access to the OH turnpike and I-75, the Port of Toledo and a variety of railroads could make this reworked USMCA a better deal for OH than NAFTA.
The trade agreements also reciprocally open up the other countries' markets to Canadian farmers, but Hargreaves said other countries are awash in surplus dairy products and Canadians wouldn't be able to compete on price in the USA because of American subsidies.
Canadian farmers hold a total of about $34-billion worth of quota, he said, and there are fears this could plunge if demand for their milk falls.
"The last few years have been the roughest years for the dairy industry out of the last 30", Kramer said.
Van Keulen said he and his three sons borrowed to expand the farm based on expected incomes according to past market growth, and he feared opening up an additional 3.6 per cent to US imports would cut into that profit margin.
He said it was too soon to talk to China about trade deal and said it was "privilege" for other countries to trade with the USA and for them "to come in and attack the piggy bank".
Mexican officials have said they hope the steel and aluminum dispute can be resolved before USMCA is signed.
He says until we sort out trade with China, farmers will continue to get paid low prices for their milk.
"The retailers will try to find the cheapest supply possible", he said.
USA officials, in recent weeks, had been adamant that the text for a new deal - whether it would only be with Mexico or also include Canada - to be released by September 30 to meet congressional notification requirements and to allow outgoing Mexican President Pena Nieto to be able to sign the deal before he is succeeded by Andres Manuel Lopez Obrador, a left-wing populist.
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Patrick Leblond, a University of Ottawa trade expert, said it doesn't give the US a veto over Canada's trade policy. US President Donald Trump imposed taxes on imports from Mexico and Canada, and the two countries retaliated.
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