The program saturated the global market with subsidized skim milk powder and cut the demand from Canadian cheesemakers for ultra-filtered milk from the U.S. USMCA will include the development of new safeguards to prevent major export increases for certain dairy products.
The effects of the new trade agreement won't be felt until at least next year.
While the new United States-Mexico-Canada Agreement, or USMCA, avoids tariffs, it will make it harder for global automakers to build cars cheaply in Mexico and is aimed at bringing more jobs into the US.
Hall Findlay said the Class 7 concessions, combined with wider access to the dairy market for USA firms, will restrict the ability of Canadian firms to compete globally. Canada has used this provision to win most of the USA challenges to the export of Canadian lumber. "This is the first time we are seeing measures like this in a trade agreement".
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In Quebec, meanwhile, politicians lamented that its key dairy sector was paying the biggest price in order to get a deal.
"Farm Bureau will review the details of the new treaty as they become available, but the elimination of Canada's Class 7 dairy pricing program is a clear victory for our farmers". "Certainty a threat to have deadline to me is an arbitrary deadline, but I'm not going to second guess the Canadian negotiators until we had a chance to really go through this agreement", said Angus.
The one positive for consumers - at least those in bigger markets like Toronto or Vancouver - may be more choice in the dairy aisles, said Mike von Massow, an associate professor at the University of Guelph.
"If we give away part of the dairy market at every new trade agreement, will it even be a viable market?"
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He says the province does $389 billion worth of trade per year with the U.S.
"Because about half of NAFTA we just put on a fresh coat of paint on it", he said. We appreciate the president keeping us front and center in these trade negotiations. Some 220,000 Canadian families depend on dairy for their livelihood, including those in dairy processing plants, equipment dealers, feed manufacturers, veterinarians, truck drivers, and a host of connected industries.
"Workers across the country will be happy to learn that NAFTA's Chapter 11 has finally been eliminated from this trade agreement", said Canadian Labour Congress President, Hassan Yussuff.
Trudeau said the USMCA is successful in maintaining fairness and balance between Canada and the USA, a trading partner 10 times its size.
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The deal is still not official as all three countries will still need to ratify the accord, which could pass as soon as November in the United States.