DONALD Trump wins his new trade agreement with Mexico and Canada and while little changes from the old one, Canada’s dairy section is far from happy.
The US-Mexico-Canada Agreement which replaces the North American Free Trade Agreement (NAFTA), allows for more access to Canada’s dairy market.
The Dairy Processors Association of Canada president and chief executive Mathieu Frigon estimates the new pact will result in more than C$2 billion in losses from market access and implementation.
“Over the past year and a half, we have repeatedly heard our government state that it
would stand up for the Canadian dairy sector,” he says in a statement.
“However, what was agreed to demonstrates very little support for our interests.”
Dairy Farmers of Canada president Pierre Lampron says the deal shows Ottawa is willing to sacrifice domestic dairy production to make a deal.
“Granting an additional market access of 3.59 per cent (up from 3.25 per cent) to our domestic dairy market, eliminating competitive dairy classes and extraordinary measures to limit our ability to export dairy products, will have a dramatic impact not only for dairy farmers but for the whole sector,” he says.
The Canadian dairy industry says the pact will reduce its production and allow lower-quality foreign dairy products more access to shelf space.
But in the US, where milk has been selling to consumers for US$1 (77p) a gallon, dairy farmers and organisations say the pact will help alleviate US overproduction and promise stability for farmers.
US Dairy Export Council president and chief executive Tom Vilsack said the outlines of the NAFTA pact remain intact, which will allow the US agricultural sector to continue developing new international markets.