Canada reached an agreement in principle late Sunday with the United States and Mexico on the modernized and updated North American Free Trade Agreement. Speaking on the Fox Business Channel Monday, Congressman Tom Reed said its a win for New York and its dairy farmers that were struggling under NAFTA.
Canada has strictly controlled imports for decades to limit the supply of milk in the country. Recently, as milk production in Canada has grown, it created the Class 7 pricing system to dump surplus milk proteins onto global markets, in direct competition with exports from the United States and other nations.
Benefits of the new NAFTA agreement with Canada for our local dairy farmers include:
• Gives farmers much need relief by providing important new access for dairy products.
• Eliminates the unfair “Class 7” program which allowed Canada to undersell the United States’ dairy products.
For manufacturers the benefits the new NAFTA agreement with Canada include:
• Incentivizes billions of dollars in additional United States manufacturing by requiring 75 percent of auto parts be produced in North America.
• Supports better jobs for hard working people by requiring 40 to 45 percent of automotive content be made by workers earning an average base wage of at least $16 per hour.
In a statement, Senator Charles Schumer said President Trump deserves praise for taking large steps to improve NAFTA. He suggested any final agreement must be judged on how it benefits and protects middle-class families and the working people in our country.