USMCA concern for Niagara dairy farmers
‘The reality is, we got nothing,’ says West Niagara MP Dean Allison
While it might be good news for the local auto manufacturing industry, Canada’s new trade deal with the U.S. and Mexico has left a sour taste for Niagara dairy farmers.
“We have a deal, but I wouldn’t say it’s a good deal,” said West Niagara MP Dean Allison, the Official Opposition’s shadow minister for international trade.
“Normally when you give stuff up, you get stuff in return … The reality is, we got nothing and we were lucky to hold on to some of the things that we did.”
Niagara Centre MP Vance Badawey, however, called the United States-Mexico-Canada Agreement (USMCA) reached shortly before deadline Sunday night “a great deal for Niagara,” and a better deal than the North American Free Trade Agreement it replaces.
For instance, he said the trade agreement that has yet to be ratified by the governments of the three countries retains aspects of NAFTA such as a dispute resolution mechanism and cultural exemptions that protect domestic arts and broadcasting sectors, while also protecting Canada’s auto industry by exempting it from tariffs, among other benefits.
But Allison said any benefits within the agreement pale in comparison to concessions nego-
tiators gave up. He was particularly concerned about the threat cheaper U.S. competition could have on hundreds of his constituents within the rural Niagara riding who work in the dairy and poultry industry.
“That’s a problem for our dairy guys, and certainly all our supply management guys,” Allison said.
West Lincoln farmer Roger Pelissero, Egg Farmers of Canada chairman, echoed those concerns in a media release from the organization.
Pelissero warned that the agreement “will have a negative impact on the system of supply management as a whole, and specifically on the vitality of Canada’s egg farming sector.”
“These concessions offer very little value to Canadian consumers who have said time and time again that they want Canadian eggs, yet the very farm families who make sure high-quality, locally produced eggs end up on our tables will see their livelihoods weakened,” Pelissero said.
Badawey, however, said changes included in the new deal are roughly in line with trade deals established with Europe and Asian countries, preserving the supply management system in dairy, eggs and poultry.
“It’s going to bring us to the next level with respect to exposing our supply chain to a bigger market, and therefore allowing us in Niagara to have an enhanced and strengthened international trade performance, and therefore jobs well into the future,” he said.
If there are “a few loose ends,” Badawey said, the government will work with the industries “to ensure those loose ends are tied up and compensation packages are put together, so if there’s someone who needs help we’re prepared to give it to them.”
In addition to ongoing concerns about the impact on local farmers, Allison remained concerned that tariffs on Canadian steel and aluminum remain in place.
Although those tariffs could be removed when the trade deal is ratified, he said that optimistically won’t happen until next spring.
“It’s dragging on and that’s not good news for our steel and aluminum guys,” he said.
“I think we’re taking a double hit.”
In a city that has been home to General Motors for decades, the protection the trade deal has put in place for the auto industry was welcome news.
St. Catharines Mayor Walter Sendzik posted his thoughts on social media Monday, congratulating negotiators.
“Details will determine if this is the best deal for Canada — but at least we have way forward,” Sendzik wrote on Twitter. “As cities, we must continue to support our local businesses to build stronger, more resilient communities.”
Unifor, which represents workers at the St. Catharines GM plant, also lauded the agreement.
In a media release, Unifor national president Jerry Dias said the “threat of capricious auto tariffs has been lifted, stabilizing future investment.”
The union was also pleased to see the inclusion of higher wages for auto-sector workers in Mexico, that could help “stem the exodus of good paying jobs from Canada.”