Bill Kelly: Trade deal aside, we’re still in a tariff battle

Bill Kelly: Trade deal aside, we’re still in a tariff battle

With the final piece hammered out Sunday night, the United States-Mexico-Canada Agreement replaces the North American Free Trade Agreement, which has been around since 1995. The pact should aid the flow of wheat, poultry, eggs, and dairy exports, he said, adding that for USA negotiators, "Dairy was a deal-breaker".

Canadian dairy farmers are panning the renegotiated trade pact between Canada, the US and Mexico, saying the deal will undercut the industry by limiting exports and opening up the market to more American products.

- Aiding farmers by curbing Canada's high tariffs and low quotas on US dairy products.

Under the USMCA Canada is offering the US a 3.6% share of the dairy market, which is more than the 3.25% it offered under the Trans-Pacific Partnership trade deal. While the agreement didn't include such limits, the administration said Canada was unsuccessful in expanding the controversial program.

Chris Groenendijk, of the 300-acre Green Dike Farm in Westholme, near Crofton, where 150 cows are milked, said such agreements chip away at Canada's dairy sector.

They described the central elements of the deal as a "template" that would become the "playbook" for all of the Trump administration's future trade deals, including new and stronger rules of origin on autos and mechanisms to ensure agreements don't become "stale and outdated". And then a year ago, Canada created a special pricing system that put more protections on its dairy industry that ruffled USA feathers. "If it's fair, I believe it will pass easily", said Trump.

"Not at all confident", he said Monday. He said he hoped to sign it in November. "Congress is on the ticket".

Speaking about Congress's role in the matter on Monday, Trump told reporters that hypothetically, one would think his deal would run into few problems in Congress, but observed that "anything you submit to Congress is trouble".

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In that case, it might be hard for Trump to win majority support for something he could tout as a victory for himself, especially given the oppositional mood of Democratic voters. But it keeps a NAFTA dispute-resolution process that the USA wanted to jettison and offers Canada protection if Trump goes ahead with plans to impose tariffs on cars, trucks and auto parts imported into the United States. The president said the name has a "good ring to it", repeating U-S-M-C-A several times.

"We're calling on the Trudeau Liberals to compensate our farmers", Ford said in the provincial legislature Monday.

Castro said he also want to see what provisions were made to protect the environment. Trump is all about branding, declaring previous deals to be bad, and then claiming to make them better (whether he does or not).

Maxwell said if the new USMCA agreement is signed by Congress, U.S. dairy farmers will benefit. Keeping that provision, previously known as chapter 19 under NAFTA, was one of Canada's lines in the sand, though the US initially wanted to eliminate it.

Agriculture is a shared portfolio between the federal government and the provinces.

USA farmers will have access to about 3.5 percent of Canada's dairy market, Reuters reported, citing sources. That is "incremental progress", said chief executive Jim Mulhern of the National Milk Producers Federation. But whether the USMCA tips the scales in favour of future industry job creation in either Canada or the United States is highly questionable.

Conversely, Canada won on its demand to maintain NAFTA's "Chapter 19" dispute resolution mechanism-a demand that the US opposed because it saw the mechanism as infringing on USA sovereignty.

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