Canada Eliminates its Class & Pricing Scheme in New NAFTA Deal

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Canada Eliminates its Class & Pricing Scheme in New NAFTA Deal

The program saturated the worldwide market with subsidized skim milk powder and cut the demand from Canadian cheesemakers for ultra-filtered milk from the U.S. USMCA will include the development of new safeguards to prevent major export increases for certain dairy products.

KIRWAN: Heinze cites issues like the nonstop growth of USA milk production and the disconnect between what farmers receive for their milk and prices at the grocery store.

The USMCA is the third free-trade agreement in which Canada has agreed to open access to its supply-managed sectors, this time including increased access for eggs, chicken and turkey.

"Continuing to give private corporations the ability to bring a dispute actually puts the farmer in harm's way", he said, adding that he believes agribusinesses will act in their own interests and there isn't a mechanism for independent farmers to advocate for themselves.

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

U.S. Dairy is one area getting a win with USMCA. But at this point, Brown said it's tough to see where Canada's dairy producers benefit. "We have been a leader in encouraging and engaging with other jurisdictions on free trade issue". Wisconsin dairy farmer Mark Heinze lost his milk buyer a year ago because of Canada's move. She says this year's expo comes as dairy farmers are facing the fourth straight year of low prices.

"Honestly I don't think it's going to have a terribly noticeable impact on United States dairy farmers in general", said Andrew Novakovic, a professor of agricultural economics at Cornell University. "I said we understand that and we pledged to work with them", he told reporters in televised remarks. How much more of their livelihood will Canadian dairy farmers be asked to give up?

Sixth generation dairy farmer Devan Toop of Chilliwack in the Lower Mainland said the deal will do nothing to help struggling US dairy farmers, nor will it help consumers on this side of the border with lower prices.

No longer called NAFTA, the new United States-Mexico-Canada Agreement, or USMCA, was announced Sunday night.

He explained the U.S.is Saskatchewan's biggest customer and with a small domestic market, the province has to ship its products overseas in order to grow and succeed economically. As a result, Canadian specialty stores are constantly short of Gouda, mascarpone and a galaxy of other dairy products. US officials intend to sign the agreement with Canada and Mexico at the end of November, after which it will be submitted to the US Congress for approval, another senior US official said.

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.

"We have always been at the forefront of the fight for fair trade that puts family farmers and ranchers on an even playing field with corporations and the rest of the world", the statement said.

Senate Finance Chairman Orrin Hatch, R-Utah, said, "I am pleased that the Trump administration was able to strike a deal to modernize NAFTA with both Mexico and Canada".

Dairy was a big sticking point for Canadian and USA officials as they renegotiated NAFTA. He said the expansion of exports should have a positive effect on prices.

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