Grainswest - Spring 2019

Spring 2019 grainswest.com 39 the USMCA, Canada agreed to give fair treatment to American wheat farmers. They will now grade American wheat just like they grade their own wheat,” said Trump. Dairy sector concessions proved contentious. Canada will provide U.S. access to its dairy market in the form of tariff rate quotas as well as the elimination of tariffs on whey powder and margarine. Milk classes six and seven will also be eliminated six months after USMCA takes effect. As well, Canada will set up a monitoring system for skimmilk powder exports, milk protein concentrates and infant formula. These products could be subject to tariffs if exports exceed established limits. Benefits to other Canadian ag sectors under USMCA will include tariff-free margarine export to the U.S. Under NAFTA, margarine from Canada was subject to an eight per cent tariff. Canadian sugar exports to the U.S. will also see reduced tariffs. According to the Canadian Sugar Institute, under NAFTA, U.S. imports of refined sugar are restricted to 22,000 tonnes and Canada’s refined sugar beet industry is limited to a 10,300- tonne share. Exports above the allotted quota are subject to a duty of US$357 per tonne. Melody Garner-Skiba, executive director of Alberta Sugar Beet Growers said USMCA will open the door to even more. “We received an additional 9,600 metric tonnes access on top of our 10,300 tonnes of current access, and it is beet-sugar specific,” Garner-Skiba said. With the integrated North American food system, a renegotiated trade agreement reduces uncertainty caused by Trump’s commitment to revisit the deal, said Brian Innes, Canadian Agri-Food Trade Alliance (CAFTA) president. “The Canada–U.S.–Mexico agreement maintains our tariff-free access. It keeps what’s working and makes it better.” He added CAFTA members and staff continue to watch remaining trade barriers and will work to resolve them. These include the requirement that Canadian meat going into the U.S. be re-inspected. “This is a regulatory hurdle, and we are put at a disadvantage. That is something we expect to be addressed between our governments,” said Innes. While industry representatives expressed relief with the signing of USMCA, many believe market opportunities lie with recent trade deals such as the Comprehensive Economic and Trade Agreement between Canada and the European Union as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. “We’re certainly very happy with our Canadian government for negotiating those deals. We’ve seen renewed interest from Japanese feed barley buyers … and we expect our exports to increase into Japan in 2019,” said Lenz. Until Canada, the United States and Mexico ratify USMCA, it is business as usual for most Canadian farmers, including grain growers. Even after full implementation, changes are expected to be minimal—with no more, but also no less—wheat and barley crossing North American borders. The USMCA deal maintains tariff-free access to the American market for wheat and barley. Back row L to R: Ildefonso Guajardo, Robert Lighthizer and Chrystia Freeland. Front row: Former Mexican president Enrique Peña Nieto, Donald Trump and Justin Trudeau attend the signing ceremony in Buenos Aires.