New Brunswick dairy farmers say Donald Trump's comments not a concern
- Author: Leroy Wright Apr 21, 2017,
Apr 21, 2017, 2:43
President Trump this week promised to resolve a dispute over USA dairy exports to Canada that could have a more far-reaching impact on cross-border trade, according to reports.
Tuesday, in a speech to Wisconsin workers, he singled out the dairy industry as a prime example of that disaster, saying that Canada's supply management system, where government regulations ensure that the supply never exceeds the demand, amounts to a "one-sided deal" that benefits only Canada. The trade groups are seeking to appeal to Trump's stated interest in protecting American businesses from unfair trade practices. "We're more the mouse", says Bernie Wolf, a professor economics and global business at York University.
Meanwhile, Canadian dairy farmers had a lot of leftover, unused high-protein milk product that it could not sell.
US President Donald Trump has delivered another broadside against Canada and this one is the most sweeping yet.
"As a matter of fact, Canada's dairy industry is less protectionist than that of the USA, which has employed technical barriers to keep Canadian dairy out of the US market". Leading imports included snack foods, red meats, live animals, vegetable oils, and processed fruit and vegetables.
He believes the Canadian policies violate the North American Free Trade Agreement and the country's commitments to the World Trade Organization.
It could all be up for discussion in NAFTA and other forums.
Canada denies that its dairy policies cause losses for US dairy farmers, and blames instead overproduction by the United States and globally, which the highly regulated Canadian system avoids.
"It's not going to be happening for long", Trump said in a state, that with NY, exports much of the ultra-filtered milk used in cheesemaking.
The claims echo sentiments Mr Trump expressed this week in Wisconsin, addressing employees of Snap-on Tools at a signing for the "Buy American and Hire American" Executive order. Some New York producers are also affected. They also asked Trump to direct USA agencies to "examine a full range of tools that could be used immediately to impress upon Canada in a concrete way the importance of dependable, two-way trade".
"Unfortunately, it appears that while US processors were making multi-million dollar investments to meet the growing cross-border market for ultra-filtered milk, the Canadian dairy industry and government were plotting a trade war against our nation's dairy farmers", the governors wrote. "We have repeatedly stressed that trade must be fair and that all countries should be held accountable when they break the rules".
The Dairy Farmers of Canada said it was confident Ottawa would "continue to protect and defend" the dairy industry. At the time, he said trade between Canada and the US needed "tweaking".
"I'm not saying we'll have another great depression, but this is surely not going to be helpful to economic growth and to prosperity in the world".
"In fact, the Canadian dairy industry is less protectionist than the American dairy industry", he argues in his letter.
Canada's dairy sector, which includes C$6 billion ($4.45 billion) in annual farmer milk sales, is protected by high tariffs on imports and controls on domestic production as a means of supporting prices.
Trump alluded to a milk ingredient class created in Ontario last April that allows Canadian ingredients to be more competitive domestically.