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New Trade Deal to Benefit Dairy Farmers

The new trade agreement opens Canada's dairy market to American farmers.

Posted: Oct 2, 2018 5:18 PM
Updated: Oct 3, 2018 11:51 AM

OROVILLE, Calif. - Nationwide, reports suggest that the new trade deal will benefit American dairy farmers.

Bob Bignami of Brentwood Farms in Oroville, says that while this may be true, he's more interested in what numbers will look like from another country: Mexico. 

"In effect, it's a very minuscule part of the agreement," Bignami said. 

Bignami adds that the impact on the dairy industry has become a big talking point because of the high tariffs that Canada places on dairy imports. They range from roughly 240 percent for milk to 300 percent for butter.

The trade agreement would also open roughly 3.5 percent of the Canadian milk market to US farmers, Bignami says. But he believes those profits would mostly be seen by farmers living near the border between US and Canada.

Mexico was the largest importers of American dairy products in 2017, importing 25 percent of total US milk exports.

President Trump and his counterparts in Mexico and Canada are expected to sign the deal by the end of November. From there it will be up to Congress to approve the deal.

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