A New Deal Between Canada, EU
In recent days, several developments have been taking place in the countries of our competitors, namely the EU. As we banter back and forth about the future of trade in the U.S. a new agreement has come forth between the EU and Canada.
In an excerpt from the International Dairy Market news report, the EU parliament has voted to approve the EU Canada Comprehensive Economic and Trade Agreement also known as CETA. The overall concept is that the EU will grant Canada unlimited access to EU dairy markets. In exchange, Canada will eliminate certain tariffs for EU dairy products. It won’t be unlimited access, but more access than currently.
The agreement will take effect in April of this year at the soonest, once both sides have given notice that all internal steps have been completed. The agreement is provisional, meaning it must be ratified by both national and regional parliaments, which is expected to occur.
With just shy of 1 billion pounds of whole milk powder in the intervention stocks program, perhaps some of that inventory will make its way back to North America. On a similar note, the EU commission has also decided to close the private storage aid program which had the goal of incentivizing the growth of inventory in private hands.
You can listen to Mike North every day on Dairyline Radio.