Canada: Trump is wrong when he says dairy practices unfair

The President told his audience Canada had been "very unfair" to USA dairy farmers.

The rhetoric Donald Trump directed at Canada's dairy industry this week has its roots in a new Canadian agriculture policy that predates his time in office, one that was the subject of a pointed letter from the USA dairy lobby.

Walker issued a joint letter to Trump with New York Governor Andrew Cuomo yesterday.

"In Canada, what they've done to our dairy farm workers is a disgrace".

Trump was reflecting a broad, long-standing criticism, levelled by many others before him: that the Canadian dairy industry is unfairly protected against foreign competition.

However, Canada continues to defend the system.

It is also a state that is feeling the effects of Canada's decision to reclassify ultra-filtered milk, a protein liquid concentrate used to make cheese.A spokeswoman for Canada's dairy industry says the change did not result in any new taxes on dairy imports. "There are a lot of people in the middle class there that are looking to move to cities, and my message to them is that wood is in vogue in Canada".

That leaves plenty of time for Trump to adopt MacNaughton's "glass is half full" outlook on Canada-U.S. trade.

"I look forward to working with the Administration to pressure and persuade the Canadians to reverse this unwise policy, which is a violation of our agreements", Sen.

He also wrote that "technical barriers" make the US more protectionist than Canada, and his nation isn't a cause of the global oversupply that has hurt American farmers.

"Rules, regulations, different things have changed - and our farmers in Wisconsin and NY state are being put out of business".

In Wisconsin this week, President Trump said that the existing rules were unfair.

The U.S. dairy industry views that Canadian milk pricing scheme to be an unfair trade practice - one that this week caught Trump's attention.

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After signing an executive order in Washington that directs his administration to investigate whether steel imports jeopardize US national security, Trump chose to repeat remarks he made earlier this week on Canadian dairy policies.

The fight over milk exports adds another irritant to the trade talks.

USA dairy officials weren't buying it.

About 70 dairy producers in both Wisconsin and NY are affected by the decision. Russian Federation is buying less milk from the Europe because of sanctions, and China is buying less milk, which affects everybody. The $101 million plant opened in 2014, the product of an investment by 21 local dairy farmers. Implemented in the 1970s, it protects Canadian farmers in three ways: by setting high, stable prices for the country's dairy products; by limiting the amount of milk farmers are allowed to produce; and by imposing high tariffs on dairy products coming into Canada, in order to safeguard the domestic market.

"We're not dumping products".

Trump's comments have caught the attention of Canadian producers. So they're displacing the US product that's coming into Canada, " said von Massow.

"I think this is probably the biggest trade negotiations test it (supply management) has yet faced". New Zealand Trade Minister Todd McClay told Reuters in an email his government was assessing the "WTO-consistency" of Canada's dairy industry policy and had raised concern with the Canadian government.

John Austin, an employee at the McEachron family farm in Salem, NY, milks one of the cows on Tuesday, Oct. 23, 2007.

That prompted the Canadian ambassador to the United States, David McNaughton, to respond in a letter to the two governors this week.

Canadian dairy producers recently chose to collectively lower their prices in order to compete with cheaper, American imports.

"In this particular case, it's not contrary to the trade agreements". The group has blamed oversupply of milk in the US for the situation. He suggested it has stalled his attempt to renegotiate NAFTA. "Simply put, in the U.S, and around the world, too much milk is being produced".

This spilt milk, however, is no laughing matter to Trump who, according to MacNaughton, needs to get his facts straight. "Nearly one year ago, we, along with other state and USA dairy officials, warned our federal partners - and Canadian industry and government representatives at all levels - that protectionist regulations would harm USA dairy producers".

"We understand that the USA wishes to do the same for its industry".

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