The new deal, once ratified, will make it easier for the U.S.to enter Canada'srestrictive dairy market, in which USA imports are discouraged through supply management practices like high tariffs.
Jersey cows at Silver Spring Farm in Syracuse.
"The announced concessions on dairy in the new USMCA deal demonstrates once again that the Canadian government is willing to sacrifice our domestic dairy production when it comes time to make a deal", said Pierre Lampron, president of Dairy Farmers of Canada (DFC) in a release following news of some of the details contained in the new deal.
NAFTA is out, USMCA is in. But Canadian arrogance didn't play well with the Mexicans, who pre-empted Canada with a US-Mexican trade deal, which gave away the dispute-resolution mechanism.
The trade impasse was overcome after both parties made some concessions, with Canada agreeing to grant U.S. farmers greater access to its dairy market and limit its automotive exports to the US. "So by eliminating that, we're hopeful that those products will again be allowed to be exported into Canada".
Brody Stapel, board president of Edge Dairy Farmer Cooperative, said the treaty won't be a major change in export numbers.
Kara O'Connor, government relations director for the Wisconsin Farmers Union, said the small wins in Canada won't fix the underlying problem in the American dairy industry.
Canadian sources say the deal will preserve a trade dispute settlement mechanism, to protect its lumber industry and other sectors from U.S. anti-dumping tariffs.
As a result, the United States will be able to export more dairy products to Canada at the equivalent of 3.6% of the Canadian market.
The $1.2 trillion trade agreement replaces the North American Free Trade Agreement, which Trump vowed to repeal during his presidential campaign. Utah's trade with these countries totaled over $7.7 billion in 2017, amounting to 30% of Utah's total worldwide trade that year. And I think honestly we're still working through it.
The White House's Peter Navarro said "everybody's speaking in good faith right now as we speak", on Fox Sunday.
Speaking at a political rally in Wheeling, West Virginia on Saturday night, Trump told supporters: "We´ll see what happens with Canada, if they come along".
[F] or the most part, despite Trump's assertion that "it's not NAFTA redone, it's a brand-new deal", the president mostly kept NAFTA intact.
For example, the new agreement would require 40 to 45 percent of auto components be made by workers earning the equivalent of $16 per hour, but it's unclear whether $16 would be the average or the minimum earned, or how such a measure would be enforced, Drake said.