Canada's Trudeau defends dairy system after Trump blast

Canada is not a problem for the US when it comes to the dairy market and the country's Prime Minister, Justin Trudeau, says it will keep its system of protectionist dairy quotas, Bloomberg reports.

Prime Minister Justin Trudeau says there are pressures on the real estate market that need to be alleviated. It was Trudeau's first comment since Trump first attacked the Canadian dairy industry on Tuesday at an event in Wisconsin. "At the same time, the USA has a $400-million dairy surplus with Canada". He stood by his own system, by saying every country subsidizes agriculture.

"There's a recognition that the levers that the federal government has cover the entire country and the housing market in Vancouver or Toronto is somewhat different than that in Halifax or Saskatoon or even Montreal", Trudeau said in an interview with Bloomberg News.

"Canada. what they've done to our dairy farm workers is a disgrace". The spat was spurred by a new Canadian milk policy that US producers say violates NAFTA and comes at a sensitive time for U.S.

NAFTA talks won't begin until after a mandatory 90-day consultation period with the U.S. Congress. Trump's nominee for the cabinet position of trade representative has not yet been confirmed. Trudeau said the system "works very well" in Canada. "We're going to get the solution".

Canada and the United States are embroiled in a long-standing trade dispute over exports of Canadian softwood lumber, which USA producers complain are unfairly subsidized.

Canada has regularly said it's willing to renegotiate Nafta and that certain parts of the pact could use an update. Trudeau and Trump are also at odds over softwood lumber.

Trudeau acknowledged the concerns of those two states, but said he didn't want to "over-react". "We're going to lay out the facts and we're going to have substantive conversations about how to improve the situation".

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