dglobalnews.com Australia, New Zealand back Trump on possible WTO action on Canada dairy
Published: Wed, April 19, 2017
Markets | By Armando Jensen

Australia, New Zealand back Trump on possible WTO action on Canada dairy


President Donald Trump dove straight into a trade fight with Canada, promising US dairy farmers his administration would intervene to restore exports of American milk. Commerce Secretary Wilbur Ross has blamed the Senate for delaying the confirmation of Trump's USA trade representative. "We understand the American dairy industry's equal frustration, because to be competitive in the Canadian market it needs to adjust its prices to reflect the domestic environment". Tammy Baldwin from Wisconsin, another big dairy state, sent a letter to top US officials about the issue last week.

President Donald Trump just targeted a new opponent - Canada's dairy trade industry.

"When it comes to wasteful destructive job killing regulations, we are going to use a tool you know very well - it's called the sledgehammer", Trump said. I commend you for stepping up and doing your part to help Wisconsin's dairy farm family.

Canada's ambassador to Washington says President Donald Trump is wrong when he says Canada's trade practices in the dairy industry are "very unfair".

Last week, U.S. Sens. "Nearly one year ago, we, along with other state and USA dairy officials, warned our federal partners - and Canadian industry and government representatives at all levels - that protectionist regulations would harm USA dairy producers". "A Wisconsin processor was able to sell ultra-filtered milk to Canada for a significant amount of time", Brancel said.

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Trump also criticized the US trading regime, which calls for a waiting period, and consultations that can stretch to three months or beyond.

Senior finance officials who briefed reporters on the meetings suggest the order would run counter to protections Canada has secured through NAFTA. "Canadian farmers always get $5-10 per hundredweight of milk more than us because they have a government-controlled supply management program".

He says resolution on the issue is needed quickly and well before NAFTA re-negotiations take place.

"Canada imports 6.3 per cent of its cheese, 10 per cent of its butter and 10 per cent of its milk powders, while the USA imports 3 per cent of its cheese, 3 per cent of its butter and 8 per cent of its milk powder, noticeably less than than Canadian imports".

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