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The new deal gives USA dairy producers more access to Canada's market.

America's dairy farmers will have new export opportunities to sell dairy products into Canada. Under a modernized agreement, all other tariffs on agricultural products traded between the United States and Mexico will remain at zero.

Meanwhile, milk production continues to rise.

Canada's new trade deal with the United States and Mexico is not siting well with one local dairy producer.

Graeff says US dairy futures are “mostly steady to firm, ” but he notes “there was no major market move” after the news.

"I'm looking for financial support for farmers but also ensuring that we maintain family-run dairy farms in Ontario", he said.

"There will be more product coming into Canada that doesn't have anywhere close to the standards that we have for our milk here". "This is a very complex agreement and certainly those details may affect us in a number of areas in the long run".

Morneau says that's slightly higher than the 3.25 per cent that was agreed to under another deal - the Comprehensive and Progressive Agreement for Trans Pacific Partnership - with 10 countries including Mexico, Japan and Australia.

Kara O'Connor, government relations director for the Wisconsin Farmers Union, said the small wins in Canada won't fix the underlying problem in the American dairy industry. "Canada agreement, in combination with the earlier agreement between the USA and Mexico, strengthens relations with two key trading partners", CFBF President Jamie Johansson said, "and we urge Congress to ratify the USMCA without delay".


The terms reached between the USA and Mexico on higher wage thresholds will also be positive for Canadian producers, said Unifor president Jerry Dias, who welcomed the deal.

The new pact - a replacement for the North American Free Trade Agreement - was reached after a prolonged stretch of negotiations, with the deal finally being reached in the 11th hour.

For the general manufacturing sector, the sentiment is one of relief, said Dennis Darby, president and CEO of Canadian Manufacturers & Exporters.

"We need to produce milk with no anti-biotics", said Nick Bokma. Canada fought hard to retain Chapter 19, a holdover from NAFTA that US trade ambassador Robert Lighthizer worked tooth and nail to eliminate. It also promised to fully compensate farmers for any losses they might incur.

"It removes that uncertainty that was hanging over the sector, in terms of our access to this North American market, in terms of the rules related to our integrated North American supply chain".

Both Freeland and Trudeau said it's important to remember that when the negotiations began over a year ago the US aim was to dismantle supply management entirely, and Canada did not let that happen.

In the meantime, the executive branches of all three countries have 60 days to review and sign the agreement, and then the U.S. Congress must ratify it.

"The unfair trade balance with Canada has been hard on the United States for many years", she said.


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