With the new U.S.-Mexico-Canada Agreement, Canada’s controversial Class 7 dairy pricing system is eliminated. Canada will now have a new pricing system tied to the Class IV price in the United States. Former Agriculture Secretary Tom Vilsack says adjustments and allowances are allowed for Canada. “The problem is that it doesn’t make reference to a specific amount in the allowance,” said Vilsack. “The text suggests there may be some flexibility and from time to time they could an adjustment in the allowance which could potentially provide an opportunity for Canada to have an advantage similar to Class 7.” Vilsack, who is now the president and CEO of the U.S. Dairy Export Council, says the dairy industry will closely monitor the implementation process. As the attention shifts back to China, Vilsack is encouraging the Trump Administration to return to the negotiating table and resolve the current trade dispute.
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.