Canada's Trudeau Defends Dairy System After Trump Criticism

Canada's Trudeau Defends Dairy System After Trump Criticism

Australia and New Zealand dairy industry leaders said on Wednesday they would support moves by the United States to draw the World Trade Organization into a trade dispute with Canada, after President Donald Trump said existing rules were unfair.

But according to Mr. MacNaughton, the current trade rules favor the U.S. industry.

Ben says if by chance Canada opts to bring in more American dairy, that could actually put the Canadian dairy industry in jeopardy.

In a letter Tuesday sent to governors Andrew Cuomo and Scott Walker, Canadian Ambassador David MacNaughton said his nation "does not accept the contention that Canada's dairy policies are the cause of financial loss for dairy farmers in the United States".

He also threatened to terminate the North American Free Trade Agreement if no action is taken to correct the problem.

On Wednesday, MacNaughton downplayed talk of growing trade irritants with the US and said he still expects there will be "constructive discussions" between the two countries because so many jobs on both sides of the border depend on trade. "Farmers in Wisconsin and NY state are being put out of business".

The complaints about Canadian trade barriers are bipartisan - especially on dairy matters, as Democrats in border states have backed the President's tough trade talk.

Canadian Prime Minister Justin Trudeau is anxious about Trump's protectionist talk and has sent his ministers to the U.S.to talk about the importance of Canada's trade relationship with the U.S.

Damsteegt said he feels "terrible" for the Wisconsin dairy farmers who approached Trump with concerns about their lack of market opportunities. "Canada, what they've done to our dairy farm workers is a disgrace, it's a disgrace".

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The Dairy Farmers of Canada also updated its brand strategy to assist consumers in detecting American ingredients. "We're going to have to get to the negotiating table with Canada very, very quickly".

Canada's dairy farmers agreed previous year to sell milk ingredients used for cheese-making to Canadian processors, which include Saputo Inc and Parmalat Canada Inc at prices competitive with worldwide rates.

"I will continue to defend supply management because it works for our farmers, it works for our agricultural industry and it works for Canadians", said Justin Trudeau. Many of those farms may now be forced out of business.

In February, Trump said the USA enjoys a "very outstanding trade relationship with Canada", pledging only "tweaks" to that relationship in larger NAFTA renegotiations.

"Processors still have the choice to purchase wherever, but buy Canadian milk because we have a more competitive price", she said.

"It nearly sounded like the president was saying Canada is putting new rules in place", Bonnett said.

However, because the U.S. President refrained from providing much detail, it's unclear exactly what specific reforms will be discussed during future trade negotiations.

According to the latest trade statistics reported by the US Census Bureau and the US Bureau of Economic Analysis, exports of goods and services to Canada totaled US $ 321.6 billion in 2016, while imports from here Amounted to US $ 313.5 billion.

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