NAFTA: Canada Makes Concessions on Dairy

Long-thought as the sticking point in the North American Free Trade Agreement talks with Canada, the U.S. will see improved dairy trade following a last-minute deal struck on the trade pact. With Canada agreeing to the new NAFTA, or U.S.-Mexico-Canada Free Trade Agreement, Canada also offered concession to U.S. dairy. Business Insider reports Canada will allow American farmers more access to its dairy market, raising quotas on the amount of U.S. dairy that can come into the country and eliminating a pricing system for Class 7 that made it more difficult for U.S. farmers to enter the market. Many believe the change in dairy policy by Canada was part of a deal to save the Chapter 19 dispute mechanism sought by Canada. Trump targeted the dairy issue before he officially announced the intention to renegotiate NAFTA. The access level is reportedly identical to what Canada agreed to give up as part of the Trans-Pacific Partnership that Trump withdrew the U.S. from early in his presidency.