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A 'trading disaster:' Trump slams NAFTA, repeats attacks on Canada's dairy industry


Trump called out Canada by name Tuesday amid a brewing trade spat that has seen the US dairy lobby accuse it of "systemic disregard" of its trade obligations.

According to Mike von Massow, a professor at the University of Guelph specializing in food economics, the complaints of Wisconsin dairy farmers have nothing to do with supply management - and much more to do with fewer Canadian dairy products entering the American market.

The work would start immediately, Trump said. 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.

It's a group of farmers that are encouraging people to call processors like Mullins Cheese and ask them to "Just Take 5" more new farms.

Under the supply management system, dairy farmers, as well as those who produce chicken, turkey and eggs, have quotas capping the amount they can produce. Imports of those products, with some exceptions, are discouraged through a system of tariffs and import quotas.

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"We have a really good system", Debbie said.

But critics argue it hasn't worked.

Martha Hall Findlay, the president of the Canada West Foundation, is one of them.

The dairy sector and the wider agriculture industry are among the areas Trump targeted during a speech to factory workers in Wisconsin on Tuesday.

Canada changed its policy on pricing domestic milk to cover more dairy ingredients, and the change that took effect in February led to lower prices for Canadian products including ultra-filtered milk that compete with the USA product. Production kicked into gear long after NAFTA came into effect, in 1994, so it's not subject to the same high tariffs as other types of milk.

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"There's a huge imbalance of milk causing a surplus", he said. "It's specifically designed for our market".

Friction between NY and Canada - the state's largest global trade partner - created by "protectionist" milk policies north of the border isn't cooling down. "There has been no change in regulation". "Canadian farmers always get $5-10 per hundredweight of milk more than us because they have a government-controlled supply management program". Dairy farmers in the US complain it's a new tariff that closes the Canadian market to them.

"We do allow pretty significant access to the Canadian market, but we definitely do protect the rest of it", she said. He called Canada's policies "very unfair".

"Americans are starting to realize more and more that Canada is pretty important to jobs in the USA", he said.

It's a sign that Trump might be pushing for more extensive changes in the trading relationship with Canada than he has signalled previously, when he spoke merely of tweaking it.

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McCart of the Farmers' Association agrees.

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