Friday, 19 October, 2018

Angus has concerns about new trade deal

Premier Promises To Protect Province's Economy Under USMCA 'It's like a death by a thousand cuts': Manitoba dairy farmers react to new trade agreement
Lindsey Cook | 05 October, 2018, 08:16

Canada's dairy industry says the concessions show Canada is "willing to sacrifice our domestic dairy production when it comes time to make a deal".

Mexico was the largest importers of American dairy products in 2017, importing 25 percent of total U.S. milk exports. Perth made up 11.45 per cent of last year's milk production in Ontario while Oxford led the way with just over 12 per cent.

Steel and aluminum producers, however, came away disappointed with no deal in place to lift the tariffs the USA imposed on their products at the end of May.

"It definitely means that we will be producing less Canadian milk, which is not good for Canadian dairy farmers", Goular said.

But on the Canadian street, many bystanders interviewed by local media breathed a sigh of relief at the prospect of stability returning to Canada-US relations. And hopefully with this new trade, it'll not break us.

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La Broquerie, Man., dairy farmer Peter de Jong milks a thousand head of cattle.

"However, Ottawa has sold a portion of the milk market and it is clear that it hurts when added to European (Comprehensive Economic and Trade Agreement) and the TPP deals", Bachand said on the sidelines of a metallurgical conference. "If you're going to market all agriculture products in the United States from Canada, they're going to have to give us equal access to their country, and to make sure that the pricing schemes that are established do not undermine our abilities to market internationally". Estimates suggest this will increase exports to Canada by $70 million, or 0.0003% of US GDP, a BofA Merrill Lynch Global Research report said.

Mercer said the deal also could help restore Mexican confidence in US agricultural products, as it "preserves the duty-free access and ends the renegotiation". Frank Haasen, owner of Haasen Farms Ltd.in Timmins, said the new trade agreement will have a significant negative impact on the dairy industry. As a result, Canadian specialty stores are constantly short of Gouda, mascarpone and a galaxy of other dairy products. I would say in recent weeks we've seen a momentum shift.

The new pact - a replacement for the North American Free Trade Agreement - was reached after a prolonged stretch of negotiations, with the deal finally being reached in the 11th hour. "Versus a very unpredictable and protectionist USA administration, I think Canada did as well as it could". In a news release, Dairy Farmers of Canada, say they're "deeply disappointed" about Canada's concessions in new deal. Resolving trade disputes with China is more important to growing export markets, he said.

The general sentiment among manufacturers is one of relief, said Dennis Darby, president and CEO of Canadian Manufacturers & Exporters. Though, they argue that the policies are needed to compete with other countries that also protect their dairy farmers. "The partnerships built over the years with Canada and Mexico through NAFTA have been a major part of growth for our businesses".

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