Business and commercial: New NAFTA rules affect dairy farmers

The American government has added yet another restriction onto Canadian dairy farmers -- concessions regarding skim milk and other milk products. The move affects the business and commercial world of Canada's dairy farmers. In fact, experts say new North American Free Trade Agreement rules could really affect the dairy industry's growth in Canada and the ability the industry has of getting rid of excess product.

Canada has opened almost another 4 per cent of the dairy market in the country to Americans as part of the new deal. But the deal also imposes added restrictions onto Canadian dairy farmers in being able to export certain dairy products like skim milk and milk powders and proteins. The United States was instrumental in getting rid of the Class 7 pricing system to bring their dairy products in line price wise with their Canadian counterparts.

Limitations were also set for powdered baby formula. Canadian dairy farmers believe that concessions have gone too far, while those in the United States believe they didn't go far enough. But the bottom line producers are facing is what they're going to do with an increased milk surplus. Analysts say only time will tell how the new rules will affect the dairy playing field in the long run. 

Business and commercial dealings in Canada take place under a complex system. Many elements of these dealings would benefit from the eyes of an experienced lawyer. Many of the confusing elements could be explained by a lawyer who knows about the legalities that accompany complex business deals. 

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