September 28, 2018

American Shipper quotes Ashley Craig in an article about the possibility of a dairy dispute affecting a NAFTA deal for Canada

1 min

On September 20, 2018, Ashley Craig was quoted in an article in American Shipper about how the major issues still to be resolved between the U.S. and Canada includes the Chapter 19 dispute settlement and dairy market access in Canada.

Mr. Craig said de minimis could be another inflection point in the remaining negotiations, as Canadian customs brokers have "dug in fairly strongly" in urging the Canadian government to oppose raising its de minimis above the current $20 level. "They don't want it to be touched, they don’t want it to go to $100," he said.

In addition to de minimis, Canada is likely to strongly resist compromise in dairy talks as it has refused President Trump's demands to remove market-access barriers for U.S. dairy exports.

In 2016, Canada created a lower-price class of industrial milk to spur domestic production, and U.S. exports declined. Canada allotted a small quota for U.S. dairy exports, after charging high tariffs for dairy products. In Canada, "the dairy industry is one of the most active, in terms of political influence and lobbying," Craig said. "They are not going to just let this go by the wayside."