Canada Open to Concessions on the Dairy Front for Smooth Talks

The talks on NAFTA are underway between both Canada and the USA, and by the looks of it, Canada is ready to make some concessions. Canadian Foreign Minister, Chrystia Freeland, made her trip to Washington on Tuesday, to discuss the trade deal with Robert Lighthizer, who is the U.S. Trade Representative.

A source close to the talks has mentioned that there are certain issues that Canada is going to compromise on. With the compromise by Canada widely reported across media, the talks and a deal between the two countries could well be on the cards.

One key issue that had led to a hindrance in dialogues between both nations was a ‘class seven’ pricing for dairy products. This Canadian policy was seen as extremely derogatory by U.S. producers, as they would set extremely low prices for dairy products coming from the USA.

The issue had been under discussion, and many media representatives understood that it was a reason of conflict between the two nations.

However, since it looks like Canada is going to take an easy stance on the issue, a compromise could soon be reached.

The dairy issue has been a sign of concern for American authorities as mentioned by Trump’s economic adviser Larry Kudlow. Talking to the reporters last week, Kudlow mentioned, “I think the United States would rather have a trade deal with Canada, but it has to be a good deal, right? And the word that continues to block the deal is M-I-L-K … Drop the barriers, and give our farmers a break.”

President Trump has also voiced his concerns over the inflated tariff on Dairy products. In a tweet dated June 18, he clearly mentioned how the 270 percent dairy tariff implemented by Canadian authorities was a farce.

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Emmy Skylar

About the Author: Emmy Skylar

Emmy Skylar started working for Debate Report in 2017. Emmy grew up in a small town in northern Manitoba. But moved to Ontario for university. Before joining Debate Report, Emmy briefly worked as a freelance journalist for CBC News.  She covers politics and the economy.

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