Canada: Trump is wrong when he says dairy practices unfair

Trevor Jackson
April 19, 2017

He also pointed out that "Canada's dairy industry is less protectionist than the USA, which has employed technical barriers to keep Canadian dairy out of the US market".

Mr. Trump is also looking for a broader negotiation of the North American free-trade agreement, he said Tuesday.

A simmering trade dispute between Canadian and American milk producers served as the opening salvo Tuesday as President Donald Trump launched a surprise attack on Canadian dairy farmers.

Trump did not detail his concerns, but promised his administration would call the Canadian government led by Prime Minister Justin Trudeau and demand an explanation.

He appeared to be taking dead aim at the Canadian industry and its supply-management system during an appearance in Wisconsin, a state he took from the Democrats with his "America First" anti-trade message.

Canada has made a decision to impose import taxes on ultra-filtered milk, a protein liq. It had been duty-free, but Canada changed course after its milk producers complained about losing market share.

Ambassador David MacNaughton says that problems with the US dairy industry are due to USA and global overproduction.

Regulations imposed by the Canadian government hurt dairy producers in NY and Wisconsin, the governors of both states said Tuesday. "Canadian dairy pricing policies are upending long-standing trade relationships with American dairy companies and have resulted in the sudden loss of major contracts for companies in both of our states", the three wrote in a letter to U.S. Trade Representative Stephen Vaughn, Commerce Secretary Wilbur Ross and Acting Secretary of Agriculture Michael Young.

The Dairy Farmers of Canada said it is confident that the Canadian government will "continue to protect and defend" the country's dairy industry. Dismantling it would mean lower prices at the supermarket, and a more internationally competitive industry, says the paper.

Charles Schumer (D-N.Y.), Kristen Gillibrand (D-N.Y.), and Tammy Baldwin, (D-Wis.) sent a letter to the administration saying the trade barriers are hurting American dairy farmers and processors.

Russia, Iran and Syria issue warning to US
The report noted that the USA would not release further intelligence, however, "due to the need to protect sources and methods". A spokesman for the USA military coalition that operates bombing missions against the Islamic State in Syria denied the report.

Kimball said dairy has always been limited in any trade agreement with Canada as they operate under the quota system.

"We're also going to stand up for our dairy farmers in Wisconsin", the president said to much applause.

Gov. Andrew Cuomo of NY and Wisconsin Gov. Scott Walker signed a joint letter urging President Donald Trump to address the policies implemented by Canada that impact producers in two of the country's top dairy producing states.

"We're going to have to be very careful and cautious about how we proceed on that file", said Mr. Horgan.

Trump last week promised "pleasant surprises" from planned renegotiations of NAFTA, an agreement he's called the worst deal in USA history.

"Can we renegotiate and get a better NAFTA deal?"

The whole thing is ridiculous.

The President said he's been reading about the situation and discussing it with advisors.

Dairy farmers have already been crippled by years of stagnating milk prices, and one Central New York milk producer - Cayuga Milk Ingredients - has said it could lose 25 percent of its sales after investing more than $100 million in an ultra-filtered milk processing plant.

Other reports by TheDailyFarc

Discuss This Article