„Any allegation that there is a guaranteed effective date is wrong; The agreement provides that it will enter into force on the first day of the third month, after the ratification of the three countries. According to the International Trade Commission, U.S. exports of U.S. milk under the USMCA are expected to increase by more than $314 million per year. Under the USMCA, Canada has agreed to limit its exports of skimmed milk powder (SMP) and milk protein concentrate (MPC) to a maximum of 35,000 tonnes per year and its exports of infant formula (FI) to a maximum of 40,000 tonnes per year (from the second year of the agreement) , which includes all exports to all countries. Beyond these limits, the exporter must pay significant export duties. „We`ve just come out of some really tough years in the dairy industry with our milk prices and 2020 should be a good year for us,“ Lamb said. The USMCA is fundamentally changing Canada`s trade-distorting policy, reforming Canada`s controversial milk pricing system, and providing U.S. farmers and producers with exclusive access to the Canadian market. „The government`s recent decision to move forward with CUSMA on the backs of our milk processors in the midst of a global pandemic is totally inexcusable,“ he said in a statement. U.S. milk exporters sold $1.4 billion in dairy products and ingredients to Mexico in 2018.
A study on the economic impact showed that every dollar of U.S. milk exports to Mexico generates $2.50 in economic activity in the United States. The Canadian dairy industry has an obligation to abolish Class 7. The Trump administration announced Wednesday that it is talking about Canada`s actions to protect its dairy market, the first enforcement action taken as part of a new trade deal that countries approved last year. „A big disappointment: „A dairy farmer reacts to the USMCA by giving his own rating on April 2, Canada gave the U.S. the power to decide when the agreement would come into effect,“ said Plett. Within six months, Canada will abolish a differentiated pricing system that would impose additional tariffs on certain dairy products. The industry estimates that it will increase farm revenues by nearly $550 million in the first six years if properly implemented. Find out how to identify Canadian dairy products here.
The new USMCA opens up about 3.6 percent of a Canadian milk market that was previously exclusively available to domestic producers – a change that some manufacturers have predicted will deduct a portion of $240 million from the industry`s bottom line.