Six months after the USMCA came into force, Canada will abolish milk price classes 6 and 7. Canada will ensure that the price of products containing skim milk containing dry milk, milk protein concentrates and infant formula is not below a level based on the U.S. price for non-fat dry milk. Canada has also committed to taking steps to limit the effects of excess skim milk production on foreign markets. These measures include the resumption of the domestic use of skimmed milk as a feed and a new obligation to limit exports of skimmed milk powder, milk protein concentrates and infant feed. For skimmed milk powder and milk protein concentrates, the overall export ceiling will be 55,000 MT in the first year after the agreement comes into force and 35,000 MT in the second year. For exports above this threshold, an export increase of USD 0.54 per kilogram is calculated. For infant formula, the export ceiling will increase to 13,333 MT in the first year and 40,000 MT in the second year. For exports above this threshold, an increase of $4.25 per kilogram is calculated. Both caps are increased annually by 1.2 per cent, which is in line with Canada`s historic population growth.
To support the follow-up to the implementation of this new program, Canada has agreed to discuss all issues related to this mechanism at the request of the United States and the two countries will review the agreement five years after it enters into force, and then every two years. The United States, Mexico and Canada have reached an agreement for the good of U.S. farmers, ranchers and agricultural companies. While agriculture has generally developed well under NAFTA, significant improvements to the agreement will allow food and agriculture to trade more equitably and increase exports of U.S. agricultural products. In exchange for opening U.S. access to dairy, poultry and egg products, usmCA is providing Canadian beet growers with improved access to the United States. As far as cereals are concerned, both countries benefit from national wheat treatment, as this is the attribution of quality qualities. On September 30, 2018, the United States, Mexico and Canada concluded negotiations for a modernized and balanced trade agreement. The new U.S.-Mexico-Canada Agreement (USMCA) will promote U.S. agricultural interests in key markets for U.S. farmers, ranchers and agricultural companies.