Foreign Affairs Minister Chrystia Freeland says Canadian dairy farmers will be compensated for losses under a new trade deal negotiated by Canada, the US and Mexico by the time the agreement takes effect. The U.S. had previously negotiated a deal with Mexico in late August. He has a herd of more than 1,000 Holstein cows and feels that the revised NAFTA agreement, the USMCA, will hurt his business and others within the dairy industry in Canada.
"It's a growing market, U.S dairy is some of the most competitive and best quality milk there is, we want to be able to export throughout the world and Canada is a really close ally and why wouldn't we want to import into that marketplace", said Tim Trotter, Executive Director of Edge Dairy Farmer Cooperative.
"Many Canadians were anxious we wouldn't get a deal, but today, numerous same Canadians are anxious about what we have given up to get this deal", said NDP International Trade Critic Tracey Ramsey. "A shipment from the dairy plant in Garden City arrived in Kansas City to head to China and was canceled".
"There won't be any immediate impacts but if an American product is coming into Canada, it's going to shrink the market that we have to sell our milk in".
"I'm not in any way in agreement with people who are saying that there's any problem with the agreement", he said, adding Canadians will see "firm specific impacts" trickle down.
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The deal reached Sunday gives farmers greater access to the Canadian dairy market, a big win for the Trump administration.
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". That's a victory for US dairy farmers, but could provoke some political turmoil for the Canadian government.
"I know we're taking one for the team, but I hope the rest of the team can stand up and help us out here", Ruiter said.
According to the WCIT, exports from Washington into Mexico have increased 700 percent and exports to Canada grew to 200 percent since NAFTA was implemented in 1994. "This is a four-dimensional game of chess; it's not checkers".
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. Among these are the promise of improved labor laws for Mexican workers, more access to Canadian markets for American farmers, and a clause that limits future free trade agreements with nations like China.
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We must feel strong. "It motivates me to get even better and improve and hopefully one day score as many, if not more, than he has".
Farmers fear they are being sacrificed by the government to get a deal that protects other industries.
De Minimis: this is a term that represents the amount of goods a person can bring across the border without being hit by duties.The basic exemption when crossing the border in person will increase to $40 of USA goods up from the current $20.
President Trump has praised the new trade deal, deeming it a "wonderful" and "historic" trilateral agreement.
As Canadians have learned to our discomfort from the long-running softwood lumber dispute, though, neither a free trade deal nor dispute-resolution mechanisms offer sufficient protection when the Americans decide to settle a particular dispute in the alley.
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