Trump wins support for possible WTO action on Canada dairy

Nick Mcbride
April 27, 2017

The U.S. -Canadian dispute has spread to Minnesota, where officials say 19 dairy farms are affected, according to The Associated Press. "And I think trade lawyers agree". "There's more to the story than what gets to the headline".

"Our federal and state governments can not abide by Canada's disregard for its trade commitment to the United States, and its intentional decision to pursue policies that are choking off sales of American-made milk to the detriment of US dairy farmers", said Tom Vilsack, the former secretary of agriculture and current president and CEO of the US Dairy Export Council, in a statement earlier this month. "We're more the mouse", says Bernie Wolf, a professor economics and worldwide business at York University.

Trump made his most critical comments yet about Canadian trade earlier in the day. "There is no market for all the milk that is being produced. It has very little to do with the supply management system".

The Dairy Farmers of Canada also updated their brand strategy to help consumers spot American ingredients on grocery shelves.

Relations with the USA are crucial as more than 75 percent of Canada's exports go to the US, while 18 percent of USA exports go to Canada. "It's a change in the pricing of a particular product".

It is one of the first issues where Schumer, the Senate Democratic leader, has agreed to work with the Trump administration in the president's first 100 days in office. He called them a "disgrace" to US farm workers.

Trump said he wouldn't allow the situation to continue and brought up a separate conflict with Canada over timber.

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"I spent time with some of the farmers in Wisconsin, and, as you know, rules, regulations, different things have changed".

"Let's not pretend we're in a global free market when it comes to agriculture ..." Such a cycle hasn't happened in Canada for decades because dairy farmers follow a supply management system that dictates how much dairy is produced to meet domestic demands. "The Americans and other countries choose to subsidize to the tunes of hundreds of millions of dollars, if not billions of dollars, their agriculture industries, including their dairy". "It can be done over time, certainly in terms of compensation", she said.

"Canada's effort to shift the focus away from the internal problems their milk pricing system is disingenuous at best", Mulhern said.

"The fact is NAFTA, whether it's Mexico or Canada, is a disaster for our country".

Trudeau told Bloomberg Television that the United States in fact ran a dairy surplus with Canada.

According to Canadian Government statistics, dairy farmers there exported close to 100 million kilograms of dairy products in 2016, valued at almost $C235 million ($AU233m).

Other reports by VgToday

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