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New NAFTA will impact dairy sector


The Canada-U.S.-Mexico trade agreement (CUSMA) launched Wednesday, replacing the 26-year-old North American Free Trade Agreement (NAFTA), as the global economy and international trade reel from the fallout of the coronavirus pandemic.

The flow of goods among the three CUSMA members — which totaled $1.2 trillion last year — in April dropped to the lowest level in more than a decade. Meanwhile, the jailing of a Mexican labor lawyer and independent union leader has reignited concern about the challenges of meeting the CUSMA’s labor rights provisions.

Some industries, including automakers, had been arguing for a delayed implementation of the new trade pact because of the difficulties they are facing from the coronavirus pandemic.

Here are some of the key changes the new regional pact will usher in:

Dairy, chicken and eggs

Canada will provide U.S. dairy farmers access to about 3.5 per cent of its $16 billion annual domestic dairy market. In exchange, the United States backed off efforts to force Canada to scrap its longstanding “supply management” system, which maintains high dairy tariffs.

The United States will be able to increase exports of some milk products like skim milk and milk proteins to Canada.

The U.S. also gets tariff-free access to Canada for 57,000 tonnes of chicken by the sixth year of the deal, and access for 10 million dozen U.S. eggs and egg equivalents.

Read more here globalnews.ca


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