National agreement between allies are built on trust, accommodation and compromise.

That seems to be lost on the U.S. in their recent unsavoury negotiation tactics forcing Canada to deal with their attempts to change some of the USMCA text put forward by the U.S. after the September agreement was struck.

“Some of the stuff they have been putting forward is not at all what we agreed to,” said the source, who requested anonymity given the sensitivity of the situation but feels strongly enough about the U.S.’s tactics to speak out.

For instance, Canada agreed that the province of British Columbia would stop its practice allowing only local wines to be stocked in supermarkets. That was an expected development. Other trading partners such as the European Union, Australia and New Zealand have also complained to the WTO about the exclusivity of B.C. wine on grocery store shelves. While it was probably appropriate for Canada to agree to stop this practice, the United States is now trying to broaden that clause to cover wine sales in the provinces of Ontario and Quebec.

The two sides are also at odds over elements of Ottawa’s promise to offer more access to U.S. dairy producers. Canada agreed to further open its market and allow American farmers to sell more milk, cheese and other dairy products north of the border. We also agreed to end a pricing system that limited imports of certain milk ingredients. The new quotas for dairy imports that will give further access to 3.6 percent of the market. Estimates suggest this will increase exports to Canada by $70 million.

That doesn’t seem like much, until you look at the bigger picture. Canadian farmers are upset because the United States already sends far more dairy to Canada than the other way around. Over the past few years, the U.S. exported an annual average of $675 million of dairy products to Canada and received about $282 million. There is also a good deal of anticipation by the exploitive U.S. dairy lobby groups that see this as an incremental step towards their true desire; complete unfettered access to the Canadian market place.

Fortunately, the USMCA must be ratified by all three nations before it comes into force and Canada will contest the changes the U.S. added to the copy.

Will the USMCA agreement hold up with a U.S. administration that does not honour their deals and a President who uses bullying tactics to get his way? We’ll see.

Mathieu Powell I President
Coastline Marketing Inc.
Main Office: 778-425-4644
Sales:  250-516-6287  
mathieu@coastline.marketing
www.coastline.marketing

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