For those that have been following NAFTA negotiations for the past couple of months, and the deal that was reached over the weekend, note the back and forth on the sticking point of Canadian dairy production classifications and its impacts on the U.S. dairy industry. But, when it was all said and done, Gregg Doud with the U.S. Trade Representative’s Office said Canada agreed to eliminate its Class 6 and 7 for milk ingredients.
However, they still have those products. Which led to additional changes agreed upon by both nations from the previous Canadian Dairy System.
“In terms of that skim milk powder, that has to be based on a U.S Class 4 price. It can’t be a lower price than that. So, that’s a change in the system, and also, we phase in a limit on what Canada can export in terms of skim milk powder. And if they exceed that, then there is an export charge that applies.”
Doud added Canadian export volume thresholds for milk products will allow U.S. producers to expand oversees sales of their products.
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