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21 April 2017, 02:38 | Darnell Patrick
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Canada denies that its dairy policies cause losses for USA dairy farmers, and blames instead overproduction by the United States and globally, which the highly regulated Canadian system avoids.
Speaking at an event in Wisconsin Tuesday, Trump said Canadian dairy farmers are in America's fair-trade sights.
It is also a state that is feeling the effects of Canada's decision to impose import taxes on ultra-filtered milk, a protein liquid concentrate used to make cheese. A big part of their problem, says von Massow, was that Canada was being flooded with duty-free American ultra-filtered milk because it was invented after the North American Free Trade Agreement, and therefore wasn't subject to duties. In February - and after months of warnings from NY and federal lawmakers - Canada moved forward with a policy that makes it more hard for USA dairy producers to sell their products across the border.
Earlier Thursday, Prime Minister Justin Trudeau said he will continue to protect Canada's agriculture producers - including its supply management system for dairy - as he tries to engage with the US administration on a variety of trade irritants.
"If Donald Trump adds a Buy American clause in the NAFTA renegotiation, it would be necessary to allow the creation of a Quebec equivalent", said the leader of the Bloc Québécois, Martine Ouellet.
The report said dairy exporters in several other countries, including Mexico, The European Union, Australia and New Zealand, have also decried Canada's dairy-pricing practices as being protectionist.
But that could change now U.S. President Donald Trump has taken up the cause, trade experts said on Wednesday.
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"We hope they move quickly before we take retaliatory trade actions against them", Schumer said.
On Tuesday, Trump suggested he, along with Wisconsin Gov. Scott Walker, Sen.
Trump's comments were a stunning departure from remarks he made when he met with Canada's Prime Minister Justin Trudeau in February.
"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".
Canada's dairy supply management system is a "one-sided deal against the United States", which has resulted in "some very unfair things" against "our dairy farmers", said Trump. "And we'll be reporting back some time over the next two weeks as to NAFTA and what we are going to do about it", Trump said. "Canada didn't like USA farmers supplying their processors" demand for milk proteins, so they changed the rules of the game.
"Together with other dairy exporting countries, including the USA, we have questioned these policies at WTO Committee on Agriculture meetings in Geneva as recently as last month", McClay said.
US policy-makers have decisions to make that will affect the northern neighbour on multiple fronts including: NAFTA, softwood lumber, the possibility of a USA import tax, and Buy American rules.
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