Dairy Trade Sticking Point In NAFTA Renegotiations

One of the sticking points between Canada and the U.S. during NAFTA renegotiations is dairy trade. Canadian Foreign Minister, Chrystia Freeland, outlined her core objectives for negotiations with the U.S. and Mexico prior to the second round of negotiations, which wrapped up earlier this week in Mexico City. She says Canada is standing firm in its policy during negotiations.According to Real Agriculture’s Shaun Haney, Canada wants dairy to be left alone.“Expect Canada to hold firm on its sacred milk, emphasizing how Canada imports five times the amount of U.S. dairy products than it exports to the U.S.,” Haney says. “Canada will also point at U.S. programs subsidizing American dairy farmers while the global market copes with excess supply.”He says the U.S. Dairy Export Council argues volumes of dairy moving both ways could be much higher if Canada was not so “protectionist” and “restrictive” on dairy trade, but Canadian leaders aren’t convinced.U.S. dairy leaders consider Canada’s new ingredient strategy and pricing class for ultra-filtered milk (Class 7) unfair, making imports from Northern states less competitive. U.S. dairy officials also allege Canada pays the highest prices for milk around the world and then dumps excess milk on the global market. Jim Mulhern, president and CEO of the National Milk Producers Federation, says Canada’s policies and new milk pricing system, Class 7, hurts U.S. farmers.Recent history has shown that Canada has the ability to complete a trade agreement with dairy included, but will they choose to with NAFTA?