When the trade deal was overhauled, the U.S. insisted on gaining access to U.S. cheese, milk, and other dairy products. But when Stephen Harper was prime minister, the Conservatives opened the door to change when they agreed to ease restrictions on European cheese imports through the Canada-European Union trade agreement, signed under the Trudeau Liberals and which came into force. The Canada-United States-Mexico Trade Agreement (CUSMA) was launched Wednesday and replaces the 26-year-old North American Free Trade Agreement (NAFTA) as the global economy and international trade are affected by the effects of the coronavirus pandemic. The Liberal government rejects this claim and insists that quotas are largely within the framework of the agreement. The budget is hungry for $1.5 billion for farmers who lose money by selling their production rights in the supply management system that limits egg, poultry and milk production in Canada. To gain the right to sell supply-controlled products, farmers must buy “quotas,” often from existing producers who want to leave the industry. “Canada`s actions violate its obligations and harm U.S. dairy farmers,” U.S.
Trade Representative Robert E. Lighthizer said in a statement. “We are disappointed that Canadian policy has this first enforcement action within the U.S. framework.