Wednesday, 24 May, 2017

'A disgrace': Trump takes fresh aim at Canada's dairy, lumber and energy

“Canada does not accept the contention that Canada's dairy policies are the cause of financial loss for dairy farmers in the United States,” Ambassador David Mac Naughton said in a letter to the governors of Wisconsin and New York that was released Tue Canada: Trump is wrong when he says dairy practices unfair
Theresa Hayes | 21 April, 2017, 19:07

Trump said his order would minimize exemptions that allow foreign companies to bid on projects in the US, something Canada now enjoys under NAFTA.

While speaking in Wisconsin Tuesday to announce his Buy American - Hire American executive order, President Donald Trump also said he plans to "stand up for our dairy farmers" regarding trade concerns with Canada. 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.

Trump delivered his strongest-ever broadside at America's northern neighbour, piling atop his complaints earlier in the week about Canadian dairy and adding fresh gripes for good measure - this time about energy and lumber. As a result, many of them may be forced out of business.

"There are a lot of milk producers in the US that are complaining about it".

"New York's dairy farms are essential to the strength of our agricultural economy, and these regulations are already having a devastating effect on our dairy farmers and their families", Gov. Cuomo said in a statement. Ron Johnson, and House Speaker Paul Ryan, who also hails from Wisconsin, would contact the Canadian government to negotiate a solution. Canada's policy change has led to lower prices for Canadian products including ultra-filtered milk that compete with the USA product.

At the heart of objections from Mr. Trump is Canada's supply-management system for the dairy industry.

The House of Commons is not sitting, with MPs on a constituency break until May 1.

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 global rates.

"There is a decent chance" the issue over ultra-filtered milk will go before the WTO, said John Holevoet, director of government affairs with the Dairy Business Association, but that could take years to litigate and doesn't provide a solution for dairy farmers now searching for milk buyers.

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

That echoed comments he made Tuesday during a visit to Wisconsin, where he said "in Canada, some very unfair things have happened to our dairy farmers" and promised to "start working on that".

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

"As politicians we're very much trained to say something and stick with it".

Trudeau is anxious about Trump's protectionist talk and has repeatedly sent his ministers to the U.S.to talk about the importance of the trade relationship. "You've got to watch how this whole thing evolves". NAFTA has been very, very bad for our country.

Herman said that raises the likelihood that supply management will be on the table in future trade negotiations during which the US will try to win an increase for its dairy imports into Canada. "It is an unwise policy that violates our agreements and hurts our farmers, and we agreed to work together to immediately address the issue".