Canada, US Remain At Impasse Over Dairy

Despite ongoing negotiations between the U.S. and Canada over a new North American Free Trade Agreement (NAFTA) deal, the two countries remain at an impasse over dairy. According to Politico, one senior Trump administration official says the debate over dairy is starting to look like a deal breaker.The U.S. wants Canada to open up its markets to U.S. products and do away with the Class 7 pricing mechanism. Canada has been reluctant to do either and wants to be free of tariffs on autos as well as steel and aluminum.Even though the U.S. sees an uphill road to an agreement, Canadian officials say that headway has been made on the dairy dispute. A top Canadian official told Politico that 60% of what needs to done has been resolved, including the Chapter 19 resolution that allows one country to challenge another country’s duties if those duties have been unfairly applied.While Canadian Foreign Minister Chrystia Freeland left Washington without any indication of a breakthrough, she will be at the UN General Assembly in New York this week with Canadian Prime Minister Justin Trudeau. President Trump will address the Assembly this week, and U.S. Trade Representative Robert Lighthizer will be in attendance. Trade talks could break out on the sidelines of this meeting.


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