Under the new agreement, U.S. farmers will have better access to The Canadian supply-based dairy market. Canada, in particular, has increased market access to 3.59 per cent and the federal government has agreed to take so-called Class 7 prices for certain dairy ingredients. The price agreement allows domestic dairy processors to purchase Canadian milk at lower prices. The new free trade agreement has been an asset to the auto sector in many ways – but to get there, Canada has made concessions on dairy products. The agreement is valid for a period of 16 years, but a mandatory “joint review” will be carried out within the first six years to determine whether the three countries wish to extend the agreement for a further sixteen years. It maintains the six-month opt-out of the deal notification that existed before. The deal also contains a chapter that Canadian opposition parties have called a “Trump veto,” which has called into question the impact that part of the deal could have on Canada`s future trade agreements. This is because the dairy industry`s quota year for a number of key products begins in August and many of the contractual conditions are directly linked to the production schedule. The adoption of the agreement in July would mean that Year 1 – a 12-month period that the sector has relied on to adapt to the new landscape – will only take 31 days. Wisconsin, a Swing State, will not only decide whether Trump wins a majority of votes in rural milk-producing areas – which he almost certainly will. By issuing its own statement on April 2, Canada gave the United States the power to decide when the agreement would enter into force, Plett said.
Forbes said everyone was still waiting for more information about the details of the new deal, especially on Class 7 milk. Why milk and cheese won`t be cheaper under the new trade deal In a statement late Tuesday, Deputy Prime Minister Chrystia Freeland`s office defended the government`s handle of the deal, reiterated a promise to compensate the dairy sector, and denied Plett`s claim that the government had ever promised a specific timeline for the deal to come into force. Lloyd Holterman says he heard detailed opinions about the deal in one place – in Canada when he comes to milk conferences. “We had a lot of milk that needed to be processed, that needed a home. And it`s not like corn – you obviously can`t keep it in the trash for a while, until you find a sale. It has to go. Dairy farmers say the new trade deal with the U.S. has “exhausted” Them Chapter 32 of the new NAFTA states that signatories are required to notify other countries in the agreement if they intend to negotiate a free trade agreement with a “non-market” country that is not already in a free trade agreement with one of the three countries. It and others were concerned that, in previous trade agreements and in this one, Canada has made it too difficult to access new import quotas, so that they remain unused. In addition to the current dairy exports that the U.S. produces to Canada in 2017 for $619 million, Canada will provide new exclusive tariff rate quotas to the U.S.
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