Source: US TRADE OFFICE, 10/1/18

The United States, Mexico and Canada have reached an agreement to benefit American farmers, ranchers, and agribusinesses.  While agriculture has generally performed well under NAFTA, important improvements in the agreement will enable food and agriculture to trade more fairly, and to expand exports of American agricultural products.

Key Achievement: Expanded Market Access for American Food and Agricultural Products.
America’s dairy farmers will have new export opportunities to sell dairy products into Canada.  Canada will provide new access for United States products including fluid milk, cream, butter, skim milk powder, cheese, and other dairy products.  It will also eliminate its tariffs on whey and margarine.  For poultry, Canada will provide new access for United States chicken and eggs and increase its access for turkey.  Under a modernized agreement, all other tariffs on agricultural products traded between the United States and Mexico will remain at zero.

Key Achievement: Canada’s Milk Classes 6 and 7 to Be Eliminated
The top priority for America’s dairy industry in this negotiation has been for Canada to eliminate its program that allows low priced dairy ingredients to undersell United States dairy sales in Canada and in third country markets.  As a result of the negotiation, Canada will eliminate what is known as its milk classes 6 and 7.  In addition, Canada will apply export charges to its exports of skim milk powder, milk protein concentrates and infant formula at volumes over agreed threshold, which will allow United States producers to expand sales overseas.

Key Achievement: Setting Unprecedented Standards for Agricultural Biotechnology
For the first time, the agreement specifically addresses agricultural biotechnology to support 21st century innovations in agriculture. The text covers all biotechnologies, including new technologies such as gene editing, whereas the Trans-Pacific Partnership text covered only traditional rDNA technology.  Specifically, the United States, Mexico, and Canada have agreed to provisions to enhance information exchange and cooperation on agricultural biotechnology trade-related matters.

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