Trudeau defends supply management, wants 'fact' based trade talk with US

And the prime minister says he will continue to protect Canada's agriculture producers - including its supply management system - as he tries to engage with USA administration on a variety of trade irritants.

Trudeau told Bloomberg Television that the United States in fact ran a dairy surplus with Canada.

U.S dairy farmers already struggling with low milk prices worry President Donald Trump's talk of renegotiating the North American Free Trade Agreement could harm trade to Mexico, its biggest export market.

Trump, however, blamed Canada for "some very unfair things have happened to our dairy farmers and others and we're going to start working on that".

He says he will seek "fair trade" with all of America's trading partners "and that includes Canada".

One of farmer Jay Lavery's dairy goats in his barn Tuesday Jan. 17, 2017 in Sharon Springs, NY. The policies target exports of ultra-filtered milk.

The U.S. Commerce Department is expected to decide by Tuesday whether to impose duties on Canadian softwood, which American producers say is overly subsidized and unfairly floods their market.

Canadian Foreign Affairs Minister Chrystia Freeland noted in a statement in response to Trump that any increase of trade barriers between the two countries would significantly affect jobs in the US and Canada.

"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.

Brancel encouraged processors to consider taking on even one farm as the state tries to help producers find a new contract in the next two weeks. "It's been very, very bad for our companies and our workers, and we're going to make some very big changes or we are going to get rid of NAFTA for once and for all".

"We know that dairy producers in the U.S are going through tough times; however, incorrectly laying the blame on an unrelated Canadian domestic policy will not improve their situation". "We have such a long and fruitful history of trade with the United States". Trade between Canada and NY totaled $32.93 billion in goods and supported more than 500,000 jobs.

"Mexico is our biggest destination for dairy and it's not only dairy", said Fairfield farmer Harold Howrigan Jr., of the US trade partnership with Mexico.

Trump last week promised "pleasant surprises" from planned renegotiations of NAFTA, an agreement he's called the worst deal in US history.

"If these multi-generational farm families can not find another market for their milk, they will be forced to sell their cows and go out of business", New York Agriculture Commissioner Richard Ball wrote in a letter to the U.S. Department of Agriculture last week.

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