Source: POLITICO'S MORNING AGRICULTURE, 1/24/18

On the one-year anniversary of President Donald Trump's decision to pull the U.S. out of the Trans-Pacific Partnership, the 11 remaining member countries agreed to a revised trade deal, now called the Comprehensive and Progressive Trans-Pacific Partnership. But as a result of Canada's participation in the new agreement, its dairy producers now say they have zero concessions left to make in the NAFTA renegotiation. 

"It simply means there's no more room to maneuver," Jacques Lefebvre, chief executive officer of Dairy Farmers of Canada, told Pro Trade's Doug Palmer and other reporters on the sidelines of NAFTA renegotiations in Montreal. "If you say you want a vibrant sector, you can't keep on carving it out."

The Canadian government agreed to some opening of its dairy market as part of the original TPP deal - a move benefiting dairy-exporting countries that are part of the new pact like New Zealand, Lefebvre explained.

U.S. producers tell a different story: American dairy companies, however, want to get rid of Canada's pricing program, as Pro Trade's Adam Behsudi has previously reported. They say Canada's actions is leading to an excess of milk protein concentrates, such as skim milk powders, on the global market. U.S. producers have also complained about Canada's supply management system - which includes tariffs and quotas - to keep out imports.

Teamsters Canada said that the new TPP deal would give the U.S. leverage in getting dairy concessions from Canada in the new NAFTA. "Now, the Americans are going to turn around at the table, saying 'you just signed away access for dairy market in the TPP; why is that not good enough for NAFTA?'" union spokesman Christopher Monette told reporters, according to iPolitics of Canada.

U.S. beef's concerns: Kent Bacus, international trade and market access director for the National Cattlemen's Beef Association, said that the U.S.'s pullout from TPP only reinforced the need to move forward with the NAFTA negotiations and to look at "tearing down trade barriers in Asia and around the world."

"Withdrawing from TPP was a missed opportunity for the United States to gain greater access to some of the world's most vibrant and growing markets. As we now enter a pivotal round of NAFTA negotiations, the last thing we need is to take a step backwards in our relationships with Canada and Mexico," Bacus said in a statement.

The TPP-11 countries aim to sign the new deal in early March.