The Canadian Trade War “Victory” Claims for U.S. Dairy are Bull Flatulence!
“Victory” shouts from the likes of President Donald Trump, Wisconsin Governor Scott Walker and the dairy co-op lobby — National Milk Producers Federation are hollow!
The recent United States Mexico Canada Agreement (USMCA) accomplishes virtually nothing for U.S. Dairy Farmers and processors, in terms of dairy exports to Canada. The deal only allows for microscopic volumes of dairy exports to be allowed to enter Canada. The current deal is for 6 years (2025). The percentage of our fluid milk production goes from 0.0003% to 0.002% over 6 years to Canada. Those are the same numbers for our Cheese too.
Mexico’s 25% tariff on cheese remain in effect. So, in the short run US dairy trade to Mexico is worse off than it was a year ago. The European interests are keenly aware of this opportunity and have recently concluded a trade deal with Mexico that should offer Europeans increased access to Mexico’s dairy markets.
Our dairy industry is currently experiencing financial difficulty as it is and this Trade Deal offers no help at all. There will be considerable political blow-back from this in the very near future.
So the cries of “Victory” are Bogus!