Tag Archives: dairy

In Wisconsin, Trump announces $13 billion in farm aid

By Steve Holland and P.J. Huffstutter

MOSINEE, Wis. (Reuters) – U.S. President Donald Trump announced a new round of pandemic assistance to farmers of about $13 billion at a campaign rally in Wisconsin on Thursday night, delivering aid to an important sector in a crucial battleground state.

“Starting next week my administration is committing an additional … $13 billion in relief to help farmers recover from the China virus, including Wisconsin’s incredible dairy, cranberry and ginseng farmers who got hurt badly,” Trump said, referring to the novel coronavirus virus.

Wisconsin is known for its milk and cheese industries, which have been hard hit by both the White House’s trade policies and the COVID-19 pandemic – but the amount of assistance to farmers weeks before the vote was unexpected.

Trump spoke in Mosinee, a rural town in the central part of Wisconsin, as state officials reported 2,034 new coronavirus cases, a record one-day increase.

The new aid program – which the agriculture department is expected to release details about on Friday – is tapping into the $14 billion in additional Commodity Credit Corporation funds that Congress agreed to prepay as part of the Coronavirus Aid Relief and Economic Security (CARES) Act, according to four sources familiar with the matter.

Farmers are expected to be allowed to start applying for the new program on Monday, the sources said.

How much certain crops will receive is not known, but the program is set to make direct payments to producers of meat, dairy, grain, vegetables and other products, the sources said.

The payments will be designed similarly to an earlier aid package: calculated based on yields of crops and the impact the coronavirus pandemic had on the price of the commodities.

Trump in April announced a $19 billion relief program to help U.S. farmers cope with the impact of the virus, including $16 billion in direct payments to producers and mass purchases of meat, dairy, vegetables and other products.

That came on the heels of $28 billion in trade aid given to the farm sector over 2018 and 2019. A government watchdog agency said on Monday the 2019 aid favored farmers from the U.S. Southeast, primarily those growing crops like cotton or sorghum, over those in other parts of the country.

China’s demand for U.S. corn and soybeans has been strong in recent weeks, boosting prices, and it is also importing more meat amid a potential food supply gap.

(Reporting by Steve Holland and P.J. Huffstutter; Writing by Andy Sullivan and Eric Beech; Editing by Tom Brown and Aurora Ellis)

Canada optimistic NAFTA deal can be struck this month: source

FILE PHOTO: Canadian Foreign Minister Chrystia Freeland takes part in a news conference at the Embassy of Canada in Washington, U.S., August 31, 2018. REUTERS/Chris Wattie/File Photo

By David Ljunggren

WASHINGTON (Reuters) – Canada is increasingly optimistic it can reach a deal with the United States to salvage the North American Free Trade Agreement, although it may take until the end of September, a source with direct knowledge of the talks said on Friday.

U.S. and Canadian officials resumed their negotiations this week to modernize the 1994 pact, which governs $1.2 trillion a year in trade between the United States, Canada and Mexico and supports hundreds of thousands of jobs.

President Donald Trump has struck a trade deal with Mexico and threatened to push ahead without Canada, a move that would kill NAFTA.

The talks in Washington are focused on Canada’s dairy supply system, which the United States says hurts its exports, Ottawa’s desire to keep NAFTA’s Chapter 19 dispute resolution mechanism and Canadian media laws that favor domestically produced content.

The Canadian source, who declined to be named given the sensitivity of the situation, said Canadian negotiators thought it was quite possible the talks would continue until the end of this month.

A U.S. official told Reuters on Thursday that Canada needed to move further on dairy. In its recent trade deal with the European Union, Canada made concessions on dairy imports.

“We’re down to three issues: Chapter 19, the cultural issues and dairy. We’ve created leverage and driven Canada to the table,” the U.S. official said. “Part of our problem is that Canada has been backsliding on its commitments (on dairy).”

Trump has targeted what he sees as “unfair” trade as part of his “America First” agenda to boost U.S. manufacturing and jobs, imposing tariffs on trading partners, including Canada, China, the EU and Mexico. That has prompted retaliation.

Tens of billions of dollars in Chinese imports have been slapped with U.S. tariffs and a new round of duties are due to be triggered soon.

Both Canada and Mexico want Trump to agree to permanently exempt them from U.S. tariffs on steel and aluminum imports. Washington has used those tariffs as leverage in the NAFTA talks.

Canada has used the provisions of NAFTA’s dispute resolution mechanism to defend its lumber exports to the United States. Washington charges that Canadian lumber unfairly undercuts prices on U.S. lumber.

APPROVAL OF CONGRESS

Trump appeared to set a deadline for a deal this week, prompting aides to U.S. Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland to work well into the evening on Thursday to find ways to move forward.

The Republican chairman of the U.S. House of Representatives Ways and Means Committee, Kevin Brady, a powerful voice in Congress on trade, told reporters differences remained between the two sides over Canada’s dairy quota regime, a trade dispute resolution settlement procedure and “other longstanding issues.”

“My sense is that everyone is at the table with the intention of working these last, always difficult issues out,” Brady told reporters after speaking with Lighthizer on Thursday.

Trump has notified Congress he intends to sign the trade deal reached last week with Mexico by the end of November, and officials said the text would be published by around Oct. 1.

Negotiators have blown through several deadlines since the talks started in August 2017. As the process grinds on, some in Washington insist Trump cannot pull out of NAFTA without the approval of Congress.

(Writing by David Chance; Editing by Paul Simao)