Published: Fri, April 21, 2017
Global Media | By Meredith Barber

Trump Responds to Canadian Milk Issue During Wisconsin Trip

Trump Responds to Canadian Milk Issue During Wisconsin Trip

The US dairy industry says that agreement led to Wisconsin and NY companies losing millions of dollars in ultra-filtered milk exports due to a drop in demand for the ingredients from Canada.

The National Milk Producers Federation said losses for the dairy industries in Wisconsin and NY alone could run into hundreds of millions of dollars. "Yeah, we're glad to be dairy farmers and we're glad that our kids are actually taking over our farm, so my kids are in their 20's still and they're excited about a future in dairy farming" said Gourlay. All major Canadian political parties have promised to defend supply management.

In a story April 18 about a trade dispute between the USA and Canada over milk, The Associated Press reported erroneously that Canada had made a decision to impose import taxes on ultra-filtered milk. It dramatically cut the prices on ultra-filtered milk in Canada.

Several provinces then lowered the price to make it more competitive, which led to fewer buyers for the American version in Canada.

Eight per cent of milk consumed in Canada is imported, he says, compared to less than two per cent in the U.S.

Spoiler alert: The Canadian Press Baloney Meter is a dispassionate examination of political statements culminating in a ranking of accuracy on a scale of "no baloney" to "full of baloney" (complete methodology below).

Freeland said that Canada buys more from the US than any other country, including the European Union, Mexico, China and Japan and that nine million jobs in the USA depend on trade and investment with Canada.

MacNaughton first responded soon after Trump's remarks, sending a letter to the governors of Wisconsin and NY, both USA dairy strongholds, saying "the facts do not bear out" the US president's criticism of Canada. "U.S. exports of milk protein substances, including diafiltered milk to Canada, were USD$98 million in 2016, up from USD$33 million in 2011".

"There's always going to be irritants", he told Canada's Business News Network (BNN) in Halifax, Nova Scotia.

Why? Because the United States has a positive balance of U.S. $ 8 billion in trade in goods and services between the two countries.

It has no plans to change course, no matter how hard the USA president tries to rock the boat.

In response to this push, Canadian farm groups, such as Dairy Farmers of Canada, have argued that programs like Class 6 are domestic policies that help the Canadian market adapt to changes within its borders and are not meant to restrict American exports. It had been duty-free but Canada changed course after milk producers there complained. Russian Federation is buying less milk from the Europe because of sanctions, and China is buying less milk, which affects everybody.

The letter was released by Ottawa on the same day as U.S. President Donald Trump signed the "Buy American and Hire American" executive order, which is widely seen in Canada as marking the start of the Trump administration's plan to renegotiate the North American Free Trade Agreement (NAFTA).

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