Breaking down dairy aspect of Trade Deal

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WASHINGTON — We’re getting new details on exact changes that open up markets for dairy exports.

Trade negotiations between the US and Canada turned into a battle over dairy products.

As part of the United States Mexico Canada Agreement, Canada agreed to end its new milk pricing system..which made certain American dairy products too expensive to sell in Canada.

The deal also allows American farmers to sell more kinds of milk, cheese and other dairy products to Canada and Mexico.  

Congressman Rodney Davis (R-IL) says that’s a victory for the US. 

“Making sure Canada wasn’t punishing dairy producers here in this country for products being shipped into Canada. That’s the whole gist of free trade, it should be free both ways,” says Davis. 

Still, Democrat Senator Tammy Baldwin (D-WI) says the new agreement won’t solve all of dairy farmers’ and producers’ problems. 

“There’s an oversupply. The price for milk is very low,” says Baldwin. 

The USMCA does not address President Trump’s tariffs on steel and aluminum, meaning Mexico’s retaliatory tariffs on U.S. cheese are still in place. 

Baldwin says that continues to hurt Wisconsin cheese producers. 

“They are seeing their export market just close down,” Baldwin says. 

Both Baldwin and Davis hope the new deal, will allow the three countries to resolve their remaining trade issues and take the pressure off U.S. dairy farms.

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