U.S. makes ‘aggressive’ demands to access Canadian dairy market: source

The United States is asking Canada to open up its protected dairy market, so American farmers can sell more of their products north of the border, CBC News has learned.

A source with direct knowledge of the talks says U.S. negotiators made the request on Sunday, just as the fourth round of NAFTA talks started winding down in Arlington, Va.

The source described the demands as “aggressive,” saying on milk alone, the U.S. wants Canada to give up 10 times what it conceded in the Trans-Pacific Partnership (TPP).

At the end of TPP negotiations, Canada had agreed to give up 3.25 per cent of its market share to foreign producers.

The source says Canadian negotiators signalled to the American team that their NAFTA proposal was unacceptable.

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Ottawa has vowed to protect Canada’s supply management system, which regulates the dairy industry, even though the U.S. has long complained about the program.

U.S. President Donald Trump even targeted Canadian dairy, calling the rules “unfair,” earlier this year.

Gathering dairy intelligence

CBC News has also learned that the U.S. request for more transparency around the dairy industry is being viewed as a possible fishing expedition to gather information that could eventually be used against Canada. 

Two sources say it appears the U.S. is looking to gather data that could be used in a trade tribunal case against Canada’s supply management system.

Both proposals were deemed unacceptable by Canadian negotiators, the sources say.

A spokesperson for the U.S. trade representative’s office declined to comment.

With the U.S. demands for market access now on the table, the one source with direct knowledge of the talks says it appears the U.S. has finally presented its full vision for a renegotiated NAFTA.

While there are several proposals neither Canada nor Mexico will accept, the source said negotiators are not expecting any more demands from the U.S.

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Article source: http://www.cbc.ca/news/politics/united-states-dairy-market-demands-1.4356840?cmp=rss