The North American Free Trade Agreement (NAFTA) replacement will not benefit dairy farmers, according to the Federal Reserve Bank.
A report by the Federal Reserve says gains made by the new U.S.-Mexico-Canada Agreement that will replace NAFTA are “too small and too far in the future to help dairy farmers.”
The Minneapolis Fed reported that “a substantial number of dairy operations have exited the business since the beginning of the year,” according to CNBC. Dairy was a fixture of the NAFTA renegotiation effort as concessions from Canada were long-sought by President Donald Trump.
Before the new agreement, U.S. dairy farmers faced strict import quotas and tariffs. Under the new agreement, which still needs congressional approval, Canada agreed to drop restrictions, allowing U.S. producers to supply up to 3.6 percent of Canada’s dairy market.
Source: National Association of Farm Broadcasting News Service.