Alberta farmers are concerned that the new trade agreement with the U.S. and Mexico gives America increased access to the Canadian dairy market, and could cut into the bottom line of domestic producers.
The United States Mexico Canada Agreement was finalized Sunday night, hours before a U.S.-imposed deadline.
All three countries have called it a win, with President Trump declaring it the “most modern, balanced in the history of our country.”
Canada succeeded in keeping the former North American Free Trade Agreement’s legal mechanism for settling disputes, and protections for Canada’s culture and automobile industry.
The trade-off was increased access to the Canadian market for American dairy producers. Previously, American farmers could access about 10 per cent of the market—now, closer to 14 per cent.
“It’s really hard to say what the impact’s going to be, but it’ll definitely have an impact,” said producer Graham Jespersen of Glory View Farms.
“If we’re cutting close to four per cent out of our industry, that four per cent is just gone, right?” he asked.
“It’ll definitely impact the bottom line. For sure.”
Alberta Milk, which represents Alberta’s 517 dairy farmers, says the deal will effectively mean more American milk—and less Canadian—on store shelves.
“All we’re giving is an opportunity for the U.S. to dump surplus milk,” said Alberta Milk’s general manager, Mike Southwood. “They’re way over supply in their own market.”
The provincial trade minister, Deron Bilous, said Alberta would be working with Ottawa.
“What I can say is that we have heard from our dairy producers and we understand that they have concerns.”
Jespersen expects his four-generation family farm will survive the new agreement, but is worried about how USMCA will affect smaller operations.
“I think for some small producers, it could be the difference between being profitable and not.”
Prime Minister Justin Trudeau promised Monday there will be some form of compensation for producers, but there are no details yet on how much or who will qualify.
