Canadian Dairy Farmers Aren't Happy With U.S. Trade Deal. Here's Why

Posted October 02, 2018

The United States Mexico Canada Agreement will replace the North American Free Trade Agreement, which was approved by President Clinton in the 90s.

If there is one thing U.S. President Donald Trump is not confident about, it is getting his new trade agreement with Canada and Mexico through the U.S. Congress.

"And I said, frankly, it's too early to talk. We're working towards a deal that is good for Canada", he told Global TV's "The West Block".

"I don't think it did".

"While auto tariffs are off the table, they never should have been there in the first place".

"We want to (have a trade) deal (with India)".

This one won't be called NAFTA, however.

Canada gave up some access to its dairy, egg and poultry industries but will keep its agricultural supply management system and avoid punishing auto tariffs under the new deal.

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In another tweet, Mr. Trump said the new agreement "greatly opens markets to our Farmers and Manufacturers, reduce [s] Trade Barriers to the US and will bring all three Great Nations closer together in competition with the rest of the world".

Trudeau repeatedly made the point that he had managed to preserve the protected domestic market, which some USA interest groups said should be scrapped.

Under the terms of the new deal, the trade dispute mechanism Canada had sought to preserve will be maintained.

For Canada, this was a hill to die on - as it was for former prime minister Brian Mulroney during the original 1988 Canada-U.S. free trade deal - because, Trudeau argued, there needs to be some rules for settling disputes when dealing with the current U.S. president. "Congratulations to Mexico and Canada!"

"This is a truly extraordinary agreement for the US, Canada and Mexico". "And they are going to start doing a lot".

Dias said he is not thrilled by what Canada conceded in the dairy sector, but he believes there will be a solution out of discussions between the government and the dairy lobby.

Farmers in the United States would also gain greater access to Canada's dairy market through the deal.

"It appears Canadian steel and aluminum workers are among those being sacrificed in the concessions made by the Liberal government in this deal", he said in a statement. Trump acknowledged the relationship did get "a little bit testy" but that the trade deal has smoothed over their differences.

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Under the agreement, Canadian online shoppers will also have a higher duty-free threshold for goods purchased from the USA - $150, up from $20.

"The cost of medication is going to go up because we gave into big pharma in the USA on patents", Ramsey warned, referring to the extension given to the length of time new drugs will spend on the market before facing off with generic competitors.

"Certainly disappointed because they didn't agree on a solution on the 232 sanctions regarding aluminum and steel", said Jean Simard, CEO of the Aluminium Association of Canada.

The US president called it a "privilege" for trading partners, like China and the European Union, to do business with the US, accusing them of staging an "attack" on the "piggy bank".

Prime Minister Justin Trudeau leaves the Office of the Prime Minister and Privy Council after an agreement was reached in the NAFTA negotiations in Ottawa on Sunday, Sept. 30, 2018. The agreement also exempts tariffs on 2.6 million automobiles.

"Of greatest importance for financial markets is the reduced uncertainty that a trilateral agreement poses, particularly for Canada", Goldman economists wrote in a note on Monday.

However, the new agreement has B.C. agreeing to scrap the restrictions that prevent US wines from also showing up on grocery-store shelves.

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