"Canadian dairy pricing policies are upending long-standing trade relationships with American dairy companies and have resulted in the sudden loss of major contracts for companies in both of our states", the three wrote in a letter to U.S. Trade Representative Stephen Vaughn, Commerce Secretary Wilbur Ross and Acting Secretary of Agriculture Michael Young.
Charles Schumer said today he will back President Donald Trump in his effort to back American dairy farmers in a developing trade war with Canada.
MacNaughton said his intent with the letter was to correct the record following a letter critical of Canada's supply-management dairy system from the governors of Wisconsin and NY.
The U.S. -Canada dairy spat received more attention Tuesday when President Donald Trump addressed the issue during a speech in Wisconsin.
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"Nobody wants to hurt Canadian dairy farmers ..."
Although support for supply-management is one of the issues in contention in his party's ongoing leadership contest, Brown said the Conservatives' position remains in favour of the system. Canada created a new class of milk - Class 7 - to cover it. All this will put tremendous pressure on Justin Trudeau and his government to act while also having to contend with Canada's powerful dairy lobby. They also asked Trump to direct US 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".
President Trump this week promised to resolve a dispute over US dairy exports to Canada that could have a more far-reaching impact on cross-border trade, according to reports. "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". The United States is Canada's largest trading partner.
Last week, U.S. Sens.
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There's also what's called ultra filtered milk that is not subject to a tariff.
"In fact, the Canadian dairy industry is less protectionist than the American dairy industry", he argues in his letter. Russian Federation is buying less milk from the Europe because of sanctions, and China is buying less milk, which affects everybody.
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. It had been duty-free but Canada changed course after milk producers there complained.
Recently, Canada implemented a new national pricing policy that blatantly blocks American dairy exports and will enable significant dumping of Canadian dairy products onto the world market. Canadian processors and producers are adjusting the relative price of ingredients to maintain a domestic market for those ingredients.
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In a statement Thursday afternoon, a spokesperson for Global Affairs Minister Chrystia Freeland said the Liberals will "always defend Canada's interests".