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USMCA deal a bad one for agriculture

04 Octobre 2018

"We had a NAFTA deal that was working reasonably well so we will call it a win because we were able to retain the key parts of the existing NAFTA deal in terms of our access to the USA market". The steel and aluminum tariffs imposed by the US government as a "national security" measure earlier this year are still in place, and the text of the new NAFTA agreement doesn't remove them. "And now I guess we turn our sights to the next big thing", Stapel said. It received substantial guarantees that the United States won't impose tariffs, something Trump had repeatedly threatened to do.

We could find out very quickly how truly committed the United States is to share the power in the name of the North American alliance that the USMCA envisions.

Trudeau was quick to embrace the new deal, welcoming it in a late night call with Trump as "a new and modern trade agreement" and that would "bring the countries closer together". So Canada can be happy about the results of dispute resolution negotiations at least.

The USMCA would remove an irritant in the cross-border grain trade with a provision under which Canada would grade imported US wheat on an equal standard with domestic wheat.

U.S. Trade Rep. Robert Lighthizer, who negotiated the new deal, had another complaint: The tribunals took some of the risk out of investing in unstable or corrupt countries such as Mexico.

Previously, Canadians buying online from the US could only purchase up to $20-Cdn. worth before having to pay import duty.

"USMCA follows two previous trade agreements in which access to the Canadian dairy market was granted, CETA and the CPTPP, which sacrificed the equivalent of a quarter of a billion dollars annually in dairy production to industries in other countries", the release adds.

Benoit Fontaine, the chair of Chicken Farmers of Canada, likewise expressed reassurance that "a year of uncertainty over the future of the agricultural landscape in Canada is over". "Now more than ever, Canada needs a universal, single-payer prescription drug program to cancel out the impact of mounting costs on Canadian families", said Yussuff.

Dairy farmer Wayne Kramer has been in the industry for three decades, and he's optimistic about the deal about a tough last few years.

Under Canada's trade agreements with Europe and the Asia-Pacific, the federal government offered up a slice of the dairy market.

Even Canada's chicken farmers, despite their disappointment at giving up market share to USA producers, expressed relief that "over a year of uncertainty" was finally over. It would exclude from the proposed tariffs 2.6 million passenger vehicles from both Canada and Mexico. "Dairy in Canada is a religion", Ellis said. But there's certainly no guarantee that the parties who agreed to them on paper are going to love the way they play out when they are put to the test. "The prime minister had made it clear that he would support dairy, particularly within supply management, but particularly dairy".

"With supply management, I can't exactly sell my milk internationally", Bos said. Vic Fremlin, owner of Lock City Dairies, called the deal "bullshit". Instead, he said, Canada can only brag about what it didn't have to concede.

"That's really a lot better than the alternative", he said. And we used it very successfully, winning every time.

President Donald Trump pushed to renegotiate the terms of NAFTA since taking office previous year.

"That is the fair thing to do", said Freeland. On Monday, Trudeau pledged to compensate farmers to cushion the blow. Trudeau also spoke with Mexican President Enrique Pena Nieto.

One final note of caution in all this is that the agreement hasn't yet been ratified by either the USA or Mexican congresses, or the Canadian Parliament. Just six days ago he said he didn't think Canada was negotiating fairly.

USMCA deal a bad one for agriculture