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NAFTA USMCA Update

October 1, 2018

On Sunday, Sept. 30, the federal government announced Canada, the United States and Mexico have reached an agreement in principle for the new United States-Mexico-Canada Agreement (USMCA). Dairy Farmers of Ontario (DFO) is disappointed with the results, which includes a calculated 3.9 per cent market access to the Canadian dairy industry.

DFO does not have the details of how this new access will be applied and over what timeframe. “It is too early to tell to what extent that will have on limiting our ability to grow,” says Graham Lloyd, Dairy Farmers of Ontario’s general manager and chief executive officer.

Canada’s supply management system provides balance by allowing Canadian dairy farmers to collectively negotiate price and adjust milk production to meet consumer demand. While farmers around the world face market fluctuations, Canadian farmers sell their milk at constant and stable prices.

As details of the new USMCA deal unfold, DFO will look to the federal government to stand behind their commitment to supporting supply management and ensuring Canadian dairy farmers are protected.




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