Canada refutes United States claims of unfair dairy trade

President Donald Trump speaks at Snap On Tools

"The facts do not bear this out".

Trump promised on a trip to Wisconsin on Tuesday to "stand up for our dairy farmers because in Canada some very unfair things have happened".

Weins, who did not offer any advice on renegotiating NAFTA given Trump's insistence upon changing the trade rules, says the problems facing USA dairy farmers were all created by overproduction. And again, I want to also just mention, included in there is lumber - timber - and energy.

This is not the first time Canada's dairy industry has been criticised for being overly protectionist. "[They] will produce just about 100,000 pounds of milk a day, which turns into about 10,000 pounds of a cheese a day".

A spokeswoman for Canada's dairy industry said Tuesday night there has not been any new taxes on dairy imports.

The governor recently joined Wisconsin Gov. Scott Walker in writing a letter to President Donald J. Trump asking him to take action against Canada for its dairy pricing program, which limits the amount of dairy products exported across the northern border.

The senator said the Central New York business could be severely hurt by Canadian rules limiting the import of American dairy used in the manufacture of cheese.

Dairy farmers say they are confident that the government has their backs, but are concerned that any potential concessions on dairy in a renegotiated NAFTA could lead to significant job losses.

American groups say that agreement means USA exports of these high-protein milk products are being elbowed out of the Canadian market for a domestic supply, costing U.S. farm jobs.

"The facts do not bear this out", MacNaughton's letter states before arguing overproduction in both the USA and world are causing poor results, something Canada is not doing. "As made clear in the report, Canada is not a contributor to the overproduction problem".

But in this particular case, he said the USA dairy industry is off base because ultra-filtered milk is not part of Canada's supply management regime, and was created after NAFTA, which has allowed it to flow into Canada from the US duty free.

Mr MacNaughton instead laid the blame at the feet of "US and global overproduction" and the hard "global situation" of low world dairy prices, which is a problem faced by farmers on both sides of the border.

"Canada stopped buying it because they could get it at the same cost domestically, so Grassland had nowhere else to go with this product and with their processing facility set up the way it is, they couldn't easily change it over to make another product", Gefvert said. "It's your own responsibility, as a country, to manage your production", a spokesperson for Dairy Farmers of Canada told the Milwaukee Journal-Sentinel last week.

He said he expects three-way talks on the trade agreement, but said there would be a number of ongoing bilateral talks on issues that affect Canada and the US, but not Mexico.

The work would start immediately, he added.

"We're not putting up any tariffs; we're not subsidizing ultra-filtered (milk) to be exported to the United States, " said Herman. "He went to Wisconsin, where it was in the news last week that one processor in Wisconsin lost a contract with a Canadian processor to produce diafiltered milk, which is a product that is specifically created to be exported to Canada", he says.

Trump also criticized the US trading regime, which calls for a waiting period, and consultations that can stretch to three months or beyond. And that means it will likely be on the table of any future NAFTA renegotiation.

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