Passage of the USMCA
The USMCA has passed the U.S. House and Senate with nearly 90 percent voting in favor. This trade agreement seems to be almost universally praised as something that will benefit farmers and manufacturing industries. Time will tell. Trade policies of the last 50 years have led to outcomes that would give ample reason for skepticism.
In the 12th Congressional District and other areas where struggling dairy farmers have at least gotten brief notice in passing, the promise that USMCA will benefit dairy farmers by expanding dairy exports to Canada has been a top selling point.
Canada has been a whipping post for many U.S. politicians as they have been profusely criticized for obstructing U.S. farmers’ access to Canada’s dairy markets. In 2018, U.S. dairy exports to Canada totaled $639 million. Dairy imports from Canada totaled $529 million. I believe the real gripe with Canada lies in their domestic dairy policies that allow their own farmers to earn a decent living on true family size dairy farms.
The Canadian dairy system has been in the globalist’s crosshairs for years. Now that Canada has signed the Trans-Pacific Partnership (TPP) their protections for their own dairy farmers are on a timeline for destruction. Furthermore, the USMCA would force Canada to change its own milk marketing structure. In addition, Canada must open its markets to more U.S. dairy products and Canada will be allowed to export ton for ton the same amount of dairy products to the United States as we export to them. The real question is, will new rules imposed on Canada cripple their dairy system to the extent that the United States “wins?” Such are the effects of globalism.
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