Once again, the president of the United States, Donald Trump, criticized Canada on Wednesday, this time, for allegedly imposing exorbitant tariffs in dairy products.
Those statements, made during a visit from the White House of the Irish prime minister, arrive less than a week after him badly characterized The Canadá-Umexico (Cusma) agreement, an agreement that negotiated, makes an important omission while stating that Canada is charging more than 200 percent of tariffs in dairy products.
Here is an overview of Canada-United States Milky Commerce, which addresses the points that the president has recently questioned.
Why is dairy trade contentious?
During the renegotiations of the North American Free Trade Agreement (NAFTA) in 2018, the Trump administration sought that Canada was with its son of decades Supply Management System.
It is a national policy framework aimed at guaranteeing predictable and stable prices by guaranteeing farmers administered by the offer a minimum price for their products.
The Farmers of American dairy 3.5 percent participation From the Canada market they thought they had won in Cusma, the revised NAFTA.
The Canada supply management system is based on the import control And it allows the dairy sectors, poultry and eggs to limit the supply of their products to which the Canadians are expected to consume.
Under both Cusma and the Comprehensive and progressive agreement for the Trans-Pacific Association (CPPPP) with Pacific Rim’s dairy exporters such as New Zealand, Canadian dairy processors effectively control what enters their market.
Both the United States and New Zealand has signed up for the supply management system through the dispute solution processes in their respective trade agreements.
American farmers have access to several Federal subsidy programssuch as dairy margin and dairy income protection programs, which help them resist volatile markets.
When Cusma entered into force on July 1, 2020, it included a new requirement for a review in six years. Cusma has a sunset clause that will end the trade agreement after 16 years unless each party is committed to renew it by another mandate.
How much dairy does Canada of the United States?
Although Trump minimized how much of an export market is from Canada for the United States, the country has consistently been one of the main importers of US agricultural products, according to the United States Department of Agriculture.
Last year, Canada was the second highest importer of us milk productsbuying around $ 1.14 billion in the United States, and was the most important export market in the United States to Eggs and related products.
The Federal Government announced a plan on Wednesday to slapped tariffs on US assets worth $ 29.8 billion to return to the president of the United States, Donald Trump, after imposing punishing rates on steel and Canadian aluminum early Wednesday.
The department said on its website in June 2024 that Canada represents “one of our most significant and reliable commercial partners.”
Total exports of agricultural products and products related to Canada from the United States amounted to approximately $ 28.2 billion of the USA. in 2023.
Has Canada uploaded its dairy tariffs?
Canadian tariffs only apply if the tariff fees agreed in the imports of US lactees are reached or exceeded under Cusma.
However, the United States Department of Agriculture said in February that “almost everything Negotiated agricultural products between the United States and Canada “are free of tariffs or quotas.
Unlike what Trump states, Canadian tariffs did not jump during the Biden administration, since the United States is far from reaching the zero rate limit for dairy products.
For example, in 2025Canada would apply a 298.5 percent tax in above the maximum butter and 245.5 percent for cheddar cheese above the maximum. Those were the same rates applied in 2017 and 2020.
Even the International Dairy Foods Association (IDFA) published a statement On March 7, which says that the United States “has never come to exceed” quotas. He also expressed concern about the increase in costs due to the current trade war with the “main business partners” of the United States.
What did the United States of Canada win in the dairy trade?
Under Cusma, Canada provides new fees of tariff rate exclusive to the United States.
The United States obtained more access to the market in Canada for its products, with Canada agreeing not to apply rates on certain amounts of imports of US dairy products. UU.
- Fluid milk
- Cheese.
- Cream.
- Skim milk dust.
- Butter and powdered cream.
- Concentrated and condensed milk.
- Yogurt and milk serum.
- Powdered milk serum.
- Natural milk component products.
- Ice cream and ice cream mixtures.
- Another dairy.
- Serum.
Canada too eliminated Two kinds of milk prices and guarantee that the price of skim milk solids used to produce non -fat milk, milk protein concentrates and children’s formula will be established lower than a level based on the price of the United States for dry milk without fat.
Canada also promised to adopt measures designed to limit the impact of any surplus production of skim milk in external markets.
