U.S. dairy experts cast doubts on Canadian trade deal ending deep slump for American farmers

U.S. dairy farmers remain hopeful that a new trade deal with Canada could help lift them out of a deep slump, but some are casting doubt that it will make much of a difference in an American market flooded with milk. The deal, announced Monday by President Donald Trump, is “more of the same,” except it hurts Canadian farmers, said Jim Goodman, a Wisconsin dairy farmer and president of the National Family Farm Coalition.“Canadian family farms will go out of business, and Canadian dairy farmers will see their incomes fall due to increased U.S. imports. And while the slightly expanded market will offer small benefits to some U.S. farmers, it does nothing to reduce the overproduction at the heart of our dairy crisis,” Goodman said.  The new deal is called the United States-Mexico-Canada Agreement. Under the terms, still being finalized, Canada would open more of its dairy market to trade and has agreed to drop its quota and pricing system for “Class 7” milk powders  — a move that could help the struggling American dairy industry as it seeks export markets.But it opens only about 3.6 percent of Canada’s market for dairy, poultry and eggs to the U.S., and that’s not much for American farmers.“The impacts will be minimal. Canada’s entire dairy market is smaller than that of Wisconsin,” Goodman said.Tensions over the North American Free Trade Agreement were heightened last year when Canada raised tariffs on ultrafiltered milk used to make cheese and other dairy products.