While milk producers are obviously an important part of the industry, the processing side of the equation is often overlooked – and will continue to be, Frigon said. Plett called the change in time, particularly in the pandemic, a betrayal of the Canadian dairy industry. And he suggested that tensions between Ottawa and Donald Trump`s White House have forced the government to make concessions. The U.S.-Mexico-Canada agreement, which replaced the North American Free Trade Agreement this year, provides governments with the opportunity to address trade disputes if they feel others are not complying with the rules. In accordance with the terms of the agreement, the United States and Canada will now begin consultations and, if the problem is not resolved, the United States can request the creation of a special body to examine the issue. The federal government betrayed Canada`s dairy processors by allowing the United States to activate the new North American trade agreement on July 1, a month earlier than the industry had planned, the Leader of the Opposition in the Senate said Tuesday. “We`ve just come out of some really tough years in the dairy industry with our milk prices and 2020 should be a good year for us,” Lamb said. These export restrictions would be a first and a dangerous precedent. It is assumed that this is the first time that a country has accepted restrictions on its exports to all countries in the world under a bilateral or trilateral agreement. Republican Congressman Tom Reed said the language of NAFTA, the previous trade agreement between the United States, Canada and Mexico, limited access to the Canadian market for U.S. dairy farms.
The trade agreement strengthens the U.S. dairy industry`s relationship with Mexico and creates new safeguards for products based on common cheese names such as Parmesan and feta. Today, milk from one of the seven tankers leaving U.S. dairy farms is found in products and ingredients sold in other countries, with Mexico being the No. 1 market, which accounts for about a quarter of all exports. Find out how to identify Canadian dairy products here. Dairy farmers say new trade agreement with US has “sold them out” By giving its own notice on April 2, Canada gave the U.S. the power to decide when the agreement would take effect, Plett said.
“Canada`s actions violate its obligations and harm U.S. dairy producers and producers,” U.S. Trade Representative Robert E. Lighthizer said in a statement. “We are disappointed that Canada`s policy has taken this first step in the U.S. Mr.C necessary to ensure compliance with the agreement. “USMCA is taking important steps to reduce trade barriers, open the door to new opportunities and support the flow of high-quality U.S. dairy products to two high-value export markets,” said Tom Vilsack, President and CEO of USDEC, in a joint press release with the National Milk Producers Federation (NMPF). Worried about what the new USMCA trade agreement means for the dairy products you buy? Worried about what this means for dairy farmers? Want to learn more about how Man finds Canadian dairy products? The U.S.-Mexico-Canada Agreement (USMCA) will be ratified in the near future. This is the third international trade agreement that Canada has been a member of in the past three years. It will have a significant impact on the Canadian dairy industry.
In the wake of the trade agreement that just replaced NAFTA, many consumers are wondering what the U.S.-Mexico-Canada agreement (USMCA) means to our local dairy farmers and the dairy products they buy.