Trudeau says dairy industry deserves compensation after trade deal

Andrew Cummings
October 5, 2018

"It's a good day for Canada", Prime Minister Justin Trudeau told reporters after a late-night cabinet meeting to discuss the deal, which triggered a jump in global financial markets.

The new trade deal that the United States, Canada, and Mexico have agreed to prevents Canada and Mexico from creating a free trade agreement with China without USA approval, Reuters reported. Theoretically they can just ship milk into Canada as well, but most of the time it ends up in a further process product.

Biologics, drugs that come from a living organism through a highly complex manufacturing process, are now protected from biosimilar competition for 12 years in the U.S. Automakers are under pressure to build more cars where workers earn decent wages.

Canadian dairy farmers have panned the renegotiated trade pact between Canada, the USA and Mexico, saying the new deal will undercut the industry by limiting exports and opening up the market to more American products. Voters in Quebec, home to 354,000 dairy cows - the most of any province - head to the polls for provincial elections Monday, which cast a shadow over the last-minute negotiations.

Peosta dairy farmer Elizabeth Elsinger said the announcement alone is giving an immediate boost to the industry. The new U.S. -Mexico-Canada agreement would sunset Class 7 and open wider Canada's need for milk products to American businesses. But disaster struck when Henk and his wife, Bettina, were in a collision with a transport truck in Saskatchewan in July.

Newby works his family's crop farm where their feed literally fuels those markets through soybean, corn and cotton production.


According to DFC, the industry employs more than 220,000 Canadians and contributes $20 billion dollars a year to Canada's gross domestic product.

"Once again, our industry has been compromised".

As reported by Bloomberg, unnamed sources close to the talks reveal that the U.S. is "confident" that a deal will be reached between Canada, Mexico, and the USA before a US-imposed deadline of midnight Sunday.

Canada has agreed to provide USA dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market.

"Now again, we get hit".

"If you add all of the these percentages we give away, it's up to 10 per cent", he said.


"And that becomes just very, very hard to do".

While increased demand is good for every dairy farmer, big farms who sell to co-ops stand to see the biggest impact.

Canada's government had faced strong opposition to elements of the revised pact from the country's dairy farmers. The New Democrats said these tariffs hurt workers across Canada and could result in at least 6,000 jobs losses.

NAFTA, the North American Free Trade Agreement, has always been a punching bag for the Trump administration; during his campaign, Trump declared it "the worst deal the United States ever signed".

"It's helped our milk futures just in the 14 hours that it's been discussed, so our milk futures have gone up not a lot, but significant enough for us all to notice", she said.


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