DIRECT FROM KEVIN -
The new USMCA agreement that has been agreed upon brings a few thoughts for us to consider. I may of misunderstood the highlights of the agreement but here are my takeaways:
- The USA will have greater access to our dairy market- up to 3.6% of our market. In lieu of this, the Federal Government is going to compensate diary farmers for loss of revenue. What does this look like and what is the timing of it, we do not know. It would appear to me if there is a payout it would come from the Federal Government which of course means our tax dollars.
- The deal increases North American content mandated on all domestic models of vehicles from 62.5% to 75%. And it increases the annual limit on Canadian made vehicles that can be shipped to the U.S. by nearly 800,000 units to 2.6 million vehicles. The question we must ask ourselves is this clause for show only or will Canada really increase production and create more jobs? It seems so far I cannot find anyone who has commented that this indeed will become reality. Please let me know if you are able to find someone who thinks this will indeed become reality.
-The three party dispute resolution has been maintained for the next 5yrs, after that we really don't know.
- This next one doesn't appear to receive much attention but I will let you be the judge. The deal appears to take away Canada's ability to make trade agreements with other countries without American approval. It would appear to be a huge blow to our national sovereignty.
I of course am open to discuss these views along with any others you may have.
Kevin