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Page 14 / 38 Stonecrest Annual 2018
Initial Impact of USMCA
The provisional deal known as the United States-Mexico-Canada
Agreement (USMCA) has caused uncertainty in the dairy sector.
The provisional deal known as which benefit most Canadians, io and Quebec. As of 2017, federal
the United States-Mexico-Canada are being jeopardized to contin- estimates place the number of
Agreement (USMCA) has plunged ue to protect a small subset of dairy farms in Canada at 10,961.
some dairy farmers into uncer- farmers in Canada—estimated at A 2016 estimate put that num-
tainty, with some now concerned 13,500 nationwide. Dairy farmers ber at 11,280. As a bulk of those
that they might not be able to are considered a potent political farms are currently based in On-
survive. force in Quebec and Ontario, the tario at approximately 3,600 and
two provinces where the industry in Quebec, approximately 5,300
The United States has repeated- is strongest, and two key bat- respectively. In Ontario alone, this
ly indicated that a key issue in tlegrounds in next year’s federal loss would amount to 1,100 dairy
NAFTA renegotiations is Canada’s election. farms.
continued protection of dairy,
poultry and egg producers. These Both the lobby group advocating At issue is the question of just
protectionist policies, known as for Canadian dairy farmers and a how much access dairy farmers
supply management, were also food policy professor who advo- from outside the country should
an irritant in the Trans-Pacific cates loosening the reins on the have to Canada’s controlled do-
free trade negotiations. Supply industry agree that if increasing mestic market and whether the
management is a set of govern- American access to up to 10 per competition that would come
ment-imposed production quo- cent of the Canadian market is from increasing that access will
tas and structured prices to limit the bargaining chip needed to have a negative financial effect on
domestic supply while impeding lock in a new NAFTA deal, there domestic farmers.
consumer access to foreign im- will be consequences.
ports through high tariffs. “These imported products dis-
It is feared that making a con- place Canadian products, so
The question for Canadians is cession to our domestic market fewer Canadian dairy products
why broad trade agreements, would result in wiping out a third are available for our Canadian
of Canadian dairy farms in Ontar-
October 2018
brought in the
new USMCA
Agreement
leading to
concessions that
has Canada’s
Farmers on the
offensive
