Tuesday, 23 October, 2018

Canada dairy farmers unhappy after meeting Trudeau on trade deal

Premier Promises To Protect Province's Economy Under USMCA 'It's like a death by a thousand cuts': Manitoba dairy farmers react to new trade agreement
| 05 October, 2018, 08:27

Prime Minister Justin Trudeau says he has assured dairy farmers they will be compensated for their expected losses under the new United States-Mexico-Canada trade agreement.

Canadian dairy farmers stand to lose 3.59 per cent of their market to US producers under the new trade deal, known as 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). There are deeper issues in the dairy industry that a trade deal won't fix, chiefly the global milk glut and a declining demand. Under the USMCA, Canada has agreed to eliminate this program in order to level the playing field between the US and Canada while allowing local dairy producers the ability to expand sales overseas. "That agreement will affect Canadian jobs I think in the long term".

Dairy analyst Mussell said dairy producers feel they have become the "fall guy" in a string of trade deals including TPP and the Comprehensive Economic and Trade Agreement (CETA), which further opened up Canada's cheese market to European firms.

Without such a system, den Haan says dairy farmers in the U.S. now have too much milk in the system and no where to send it.

Monroe says the USA pork sector has been in expansion mode but the uncertainty we've seen around exports over the past year has inhibited investments. "It's not whole milk that they ship". We also now have access to an additional 3.6 percent of Canada's dairy market, which is better still than what we would have achieved under TPP. Some will wind up in teas; some will end up in yogurt.


The deal also slaps a levy on any Canadian exports of Class 7 milk products over a certain threshold, effectively limiting companies' access to foreign markets. "We have a lot of cows, and we have a lot of cows producing milk".

"Canadian dairy farmers will now be paid less for their milk as processors import product from the states".

Exports that had grown to $102 million skidded to a halt at a time when America's dairy industry, then in its third consecutive year of low prices, was losing money and farms.

Preserving the protections for dairy was politically important to Trudeau, whose Liberal party faces elections next year. As a result, Canadian specialty stores are constantly short of Gouda, mascarpone and a galaxy of other dairy products. "Canada's entire dairy market is smaller than that of Wisconsin", Goodman said.

"The threat of capricious auto tariffs has been lifted, stabilizing future investment" said Dias in a statement. The keeper was Chapter 19, the nation to nation dispute resolution mechanism under which a country that felt another was playing unfair could take their concerns to a panel made up of members of both countries. Canada was able strike a deal with the United States at the 11th hour of a deadline Sunday night. The credit union's CEO, Guy Cormier, said in an interview that Desjardins is analyzing the potential impact while waiting to see whether federal or provincial governments will provide compensation, and will consider whether there are "conditions on their loans that we can work on with [farmers]".

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