Prime Minister Justin Trudeau and Foreign Affairs Minister Chrystia Freeland confirmed Monday a compensation package for supply-managed producers of dairy and poultry would be put together.
For instance, it looks like the USA will be able to ship 2,084 metric tons of cheese to Canada tariff free in the first year the agreement is in force with half the cheese being for industrial use and half for retail, he said. One, it preserves and enhances the Mexico trade relationship.
"This is more about political pressure".
Some have characterized the side letter as effectively establishing a quota on the number of autos that can be exported to the U.S. - anathema to the very principles of free trade.
President Trump says steel and aluminum tariffs on Canada and Mexico will remain in place for the foreseeable future, leading both Mexico and Canada to retaliate with tariffs of their own.
Trudeau said those were being negotiated on a separate track, and that the talks continue.
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MARK HEINZE: There are some pretty major problems in the dairy industry and in agriculture in general right now. "And while the slightly expanded market will offer small benefits to some USA farmers, it does nothing to reduce the overproduction at the heart of our dairy crisis", Goodman said.
"However, Ottawa has sold a portion of the milk market and it is clear that it hurts when added to European (Comprehensive Economic and Trade Agreement) and the TPP deals", Bachand said on the sidelines of a metallurgical conference.
The Dairy Farmers of Canada warned that giving USA farmers an additional 3.59 per cent slice of the US$16 billion (RM66.2 billion) Canadian milk and cheese market would have a "dramatic impact" on the sector. It also says the first 2.6 million Canadian autos exported to the USA will be exempted from tariffs, a figure well above the current export rate of 1.8 million. The trade group said it "fails to see how this deal can be good for the 220,000 Canadian families that depend on dairy for their livelihood". The change is similar to a provision in the Trans-Pacific Partnership, the trade pact canceled by the Trump administration, according to Ohio State University professor Ian Sheldon.
Opposition Conservative leader Andrew Scheer was quick to swipe at Trudeau's government over the deal. For example, a water company could sue Canada if they felt we were unfairly limiting water exports for environmental reasons (and this has indeed happened). Canada fought hard to retain Chapter 19, a holdover from NAFTA that US trade ambassador Robert Lighthizer worked tooth and nail to eliminate. "We got a deal that I think most Canadians can live with".
Proponents say the system prevents market saturation, which keeps prices stable and ensures steady incomes for farmers while better protecting food safety, driving high quality and eliminating the need for subsidies.
"As someone who voted against NAFTA and opposed it for many years, I knew it needed fixing".