Canada: Trump is wrong when he says dairy practices unfair

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New Zealand Trade Minister Todd McClay told Reuters in an email his government was assessing the "WTO-consistency" of Canada's dairy industry policy, and had raised concern with the Canadian government.

Canada's ambassador to the United States sent a letter this week to New York Gov. Andrew Cuomo and Wisconsin Gov. Scott Walker, denying that Canada has imposed any unfair trade practices.

Trump, while in Kenosha, Wis., on Tuesday spoke out against the "very, very unfair policy" that is blocking USA exports of ultra-filtered milk, which is used to make cheese.

Canadian Prime Minister Justin Trudeau pushed back against Trump's comments Thursday, saying dairy is protected "for good reason". Trump made it obvious his complaints from earlier this week in Wisconsin were specifically about recent rule changes on milk classification, not on the longer-term issue of Canada's supply-management system.

In a story April 6 about a trade dispute between the US and Canada over milk, The Associated Press reported erroneously that some Canadian provinces had applied import taxes to USA imports of ultra-filtered milk. Recently, Canada made a decision to lower the price of it's own ultra-filtered milk, thus, ending it's contract with Grassland.

Since the Trump administration took office, Canadian officials from all levels of government have made more than 80 trips to the US and held more than 180 meetings - including a friendly get together between Trump and Trudeau in Washington in February.

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).

Reading from handwritten notes during an Oval Office signing for an unrelated memorandum, Trump called Canada's actions a "disgrace" and said the Canadian measures have hurt dairy farmers in Wisconsin and NY.

MacNaughton also said the trade balance on dairy "massively" favours the U.S.by a five-to-one margin.

"This situation is not just a bilateral trade problem for the United States". It said the US has "raised serious concerns with Class 7".

About 75 Wisconsin dairy farmers have watched their market dry up.

The U.S.is debating the idea of a border tax that could hurt certain imported products - including Canadian oil, which is a leading source of America's energy supply. Russian Federation is buying less milk from the Europe because of sanctions, and China is buying less milk, which affects everybody. The $101 million plant opened in 2014, the product of an investment by 21 local dairy farmers. It had been duty free. Canada changed its policy on pricing domestic milk to cover more dairy ingredients, leading to lower prices for Canadian products including ultra-filtered milk that compete with the USA product.

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"We're not dumping products". "But the real issue is the glut of milk on the market".

And as for oil, she described the stable supply from Canada as a job-creating lifeblood of the USA economy. "I think that's the frustrating part". USA companies had, until recently, supplied Canadian customers during periods of relatively tight supplies and when production increased.

From the National Association of Farm Broadcasting news service.

"It's politics", Trudeau said.

The agreement is the first between the two New York City natives after months of bitter exchanges, including a Twitter battle that included a nasty exchange over Vladimir Putin and Russian Federation.

And the prime minister says he will continue to protect Canada's agriculture producers, including the supply management system, as he tries to engage in "fact-based" conversation with the USA administration on a variety of trade irritants.

"In this particular case, it's not contrary to the trade agreements. We will judge American policy when American policy is announced".

Luis Ribera, an agriculture economics expert at Texas A&M University, said that while the ultra-filtered milk issue may technically fall outside the scope of NAFTA, it is a sign of US anger towards Canada's supply management system.

Officials perceive Trump's sudden spurt of Canada-bashing as a calculated move, typical of his negotiating style, and created to instill a little fear as NAFTA talks approach.

In a story April 19 about a U.S.

"Our marketing system works in our country and it's not for other countries to determine what the best fit is for Canadians", said chair Tom Kootstra, who owns and operates Stradow Farms near Ponoka, Alberta.

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