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Will a dairy agreement be reached to save NAFTA?

Source: Wikimedia Commons

We could have headway in a NAFTA agreement. We seem to have an agreement on concessions from Canada over dairy in exchange for an agreement on dispute settlements. Canada wants to get a North American Free Trade Agreement (NAFTA) done.

It looks like a revamped version of NAFTA is very possible. Mexico and the United States agreed to terms of a trade deal, last week, forcing Canada to come back to the table. One of the biggest sticking points between the United States and Canada was over dairy. The U.S. has claimed the Canadian dairy supply program was hurting chances for U.S. dairy to be brought into the Canadian markets. Canada has reportedly decided to make some concessions on dairy, which would allow limited access for U.S. dairy producers in exchange for concessions on a key dispute settlement. We hear from Canada’s Foreign Minister Chrystia Freeland.

This is definitely an about-face from earlier statements by Canadian Prime Minister Justin Trudeau, who said there would be no compromise. Iowa Senator Chuck Grassley gave his impressions on what it would take to reach a dairy agreement with Canada.

The move may upset Canada’s dairy producers, but sources indicate this is a similar deal Canada has given to the European Union and Pacific Rim trading partners.