Dairy farm industry weighs in on new USMCA trade agreement
Oct 05 2018 by Cristina Jennings
"Anything you submit to Congress is trouble no matter what", Trump said, predicting that Democrats would say, "Trump likes it so we're not going to approve it".
"Without tariffs we wouldn't be talking about a deal", Mr Trump said. "And I think there'll be a better spirit between the three countries, which is important for our farmers", said President Trump.
"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. Now she fears that growth will halt because of the latest deal. He said Canada did not simply accept "any deal".
"If we're cutting close to four per cent out of our industry, that four per cent is just gone, right?" he asked. The plan to compensate the supply-managed farmers stalled when the United States withdrew from the TPP in 2017. It also won a provision setting tariff-free entry of cars and automotive parts above current levels, which will make it harder for any US government to hold this country's automotive sector hostage in the future.
After that deal was inked, dairy farmers in Canada got $250 million through the newly-created Dairy Farm Investment Program.
Canada's new trade agreement with us and Mexico contains one clause that could have a big impact on national sovereignty and puts the agreement itself at risk in the long run.
Trump's primary objective in reworking NAFTA was to bring down U.S. trade deficits, a goal he has also pursued with China, by imposing hundreds of billions of dollars in tariffs on imported goods from the Asian giant. Canada had demanded protection from Trump's tariffs on imported steel and aluminum.
They said NAFTA has had many positive benefits, including "dramatically higher trade" among the three countries, especially in the agricultural sector.
"These measures will support many - hundreds of thousands - American jobs", Mr Trump said.
The clause stipulates that the other two nations in the pact have the option of pulling out of the deal if any one of them signs a free trade deal with a "non-market" country.
Almost every major automaker builds cars in Mexico, including some European luxury brands. Starting in 2020, USMCA will force auto manufacturers in North America to build vehicles with at least 75 per cent of their parts coming from within the continent to qualify for zero tariffs.
"Not only did they give up 3.59 per cent of the domestic dairy market, they have also eliminated some of our competitive dairy classes and have limited our export abilities".
"Today, the message sent to our passionate, proud and quality-conscious farmers and all the people who work in the dairy sector is clear: they are nothing more than a bargaining chip to satisfy President Trump", added Lampron.
Iowa is the 11th leading state in dairy production with majority coming from the northeast and northwest corners of the state. It's allowing 3.6 per cent more USA dairy to come into Canada's market.
"It takes the future hopefulness out of our industry", Bechtel said.