Agreement getting mixed reviews

The new trade agreement between Canada, the U.S. and Mexico has been receiving mixed reviews, including from stakeholders in the district.

Signed last week, the far-ranging USMCA agreement replaces NAFTA. It sets out trade conditions for many industries, including agriculture.

Miranda Verhoef is the owner of Happy Cow Dairy north of Olds.

“We are not happy with the outcome from the new agreement because we again have to give more American access on our Canadian dairy market,” said Verhoef. “This agreement also jeopardizes our investment and limits our ability to export.

“On one hand it could have been worse, but on the other hand we’ve already several times given access to foreign markets and now again we have to do that. That’s sad news.”

What the long-term costs to the industry may be remain to be seen, she said.

“We don’t know exactly what the costs will be,” she said. “There is so much milk in America that it will probably overflow into supermarkets here. I don’t see how this deal is any good for all the families that depend on dairy for their livelihood.”

Asked what she thinks about the government saying it will compensate Canadian dairy farmers, she said, “We didn’t come here to be compensated; we just want to farm and earn our money just like every other hard-working Canadian.”

The USMCA allows an additional domestic market access of 3.59 per cent to U.S. dairy producers.

Jason Nixon is the United Conservative Party (UCP) MLA for Rimbey-Rocky Mountain House-Sundre.

“I think we are relieved that an agreement has been reached,” said Nixon. “If offers certainty for now and it puts an end to all the uncertainty that we’ve seen in recent months.

“The United States is our biggest export market for wheat and barley so this looks fairly good at first glance for ag producers.”

The softwood lumber situation vis-à-vis the U.S. is of particular worry for the region, he said.

“One of the concerns I have for our region and I’m disappointed to see that the softwood lumber issues have really not been resolved,” he said. “Our understanding is that the ongoing softwood lumber issues are not resolved within this agreement

“In Alberta there are 20,000 forestry industry jobs and that’s something that is of critical concern in my constituency with two sawmills. That’s the one early concern that jumped out at me as applicable in our area.”

Regarding the deal’s impact on the dairy industry, he said, “There are clearly some changes that are within this deal that will affect dairy. We are going to have to talk to our dairy organizations and that is something that is certainly on the radar.”

The negotiations that led to the new agreement should be a lesson in themselves, he said.

“The whole episode should make it clear to us that we need to be more diversified in our export markets,” he said. “Nearly all of the oil and gas produced in Western Canada goes to one market, which is the United States and it currently does so at a deep discount. So I think the events (negotiations) of the last months shows that needs to be a focus going forward.”

Mountain View County reeve Bruce Beattie says it is hard to say exactly what long-term impact the agreement may have on rural Alberta.

“It’s like any negotiations, it’s a balance and when you are negotiating with an elephant, or an elephant with a club, it’s a difficult situation to be in,” said Beattie.

“I think it’s important that the retained Section 19, the dispute resolution (provisions). I think that is pretty important. I think we’ve given away a lot of our sovereignty in terms of negotiating other trade agreements. It’s going to have a cost effect on consumers and on the cost of drugs.”

Nathan Cooper is the UCP MLA for Olds-Didsbury-Three Hills.

“With every trade deal there is some upside and some downside,” said Cooper. “I would have liked to see significantly more free trade. Obviously there is some give and take here. On balance it is a wait and see to see how some of the finer details have an effect on trade.

“I think it was imperative that we had a deal done with the United States. It would have been very, very problematic for our economy if there were no free trade deal. I applaud everyone for getting one done.”

Asked about dairy industry concerns, he said, “I’ve heard from some producers who share those concerns, but I’ve also heard from some residents here in Olds-Didsbury-Three Hills who aren’t entirely supportive of the supply management system.

“Hopefully we will wind up with an all-round better system with respect to opening up the market a little bit but still preserving the system as a whole, the supply management system.”

Alberta Milk chairman Tom Kootstra said the USMCA isn’t good news for Alberta's 516 dairy farmers.

“We are extremely disappointed,” said Kootstra. “This outcome will do deep harm to not only our farmers, but also the 220,000 Canadians that work in the industry.

“This will dramatically affect our farmers and will negatively shape the future of the Canadian dairy industry. I worry about my kids’ place in the industry and the next generation of dairy farming in Canada.”