Trump enters US-Canada milk fight with threat to end NAFTA

"Dairy trade between Canada and the U.S.is important and the sectoral trade balance massively favours the USA, at around 5 to 1", he wrote in a letter to New York Governor Andrew Cuomo and Wisconsin Governor Scott Walker this week.

MacNaughton says the facts don't bear out that Canada's policies are the cause of financial loss for USA dairy farmers.

While speaking in Wisconsin Tuesday to announce his Buy American - Hire American executive order, President Donald Trump also said he plans to "stand up for our dairy farmers" regarding trade concerns with Canada.

Ottawa's envoy to Washington downplayed talk of growing trade irritants with the USA, a day after President Donald Trump sharply criticized Canada's well-guarded dairy sector.

The issue, which was exacerbated last week after a Wisconsin-based dairy processor that supplies Canadian customers said it'd stop buying milk from more than 70 USA farms, revolves around what's called "ultra-filtered milk" that companies use in cheese and other dairy products.

Even though Ellis welcomes Trump's critique of Canada's dairy trade restrictions, he doesn't think the Canadian government will change course. "Wisconsin and NY dairy farmers are only the first victims of Canada's illicit dairy trade restrictions", the governors' memo stated.

President Donald Trump speaks at Snap-On Tools, Tuesday, April 18, 2017, in Kenosha, Wis. Several state governors have spoken up on the issue, and House speaker and WI representative Paul Ryan recently sent a letter to Trump's trade team about the issue. The Chamber of Commerce added that it would be a "mistake to close the door on high-skilled workers" who can contribute to the growth and expansion of American businesses and make the USA more competitive around the world.

The U.S.is debating the idea of a border tax that could hurt certain imported products - including Canadian oil, which is a leading source of America's energy supply.

On Wednesday, Australia and New Zealand dairy industry leaders said they would support any moves by Washington to draw the World Trade Organization into a trade dispute with Canada.

"So the Americans are not suffering from the current terms of NAFTA and existing trade agreements", said Dumontier. "Because in Canada, some very unfair things have happened to our dairy farmers". The root of the problem, the issue that we're dealing with, is an over supply of milk.I say 'Mr. The White House says the program undercuts American workers by bringing in large numbers of cheaper foreign workers, which drives down US wages. "As a matter of fact, Canada's dairy industry is less protectionist than that of the USA, which has employed technical barriers to keep Canadian dairy out of the US market". "We're going to work on that very hard", Trump said of finding a solution.

New York Sens. Charles Schumer and Kirsten Gillibrand, and Wisconsin Sen.

Trump said his order would minimize exemptions that allow foreign companies to bid on projects in the US, something Canada now enjoys under NAFTA.

MacNaughton backed the organization's position that Canada has done nothing to block USA imports, and that the predicament is the result of an "over-saturated" market that has led to lower prices. -Canada dispute over milk, The Associated Press reported erroneously that Canada had begun imposing import taxes on USA ultra-filtered milk.

WINNIPEG/SYDNEY For decades, Canada's protected dairy sector has riled rival exporters from Asia to Europe who resent having limited access to a wealthy consuming nation. On lumber, cheaper Canadian wood has reduced the cost of US homes but also caused recurring legal spats with the USA industry that alleges product-dumping.

US policy-makers have decisions to make that will affect the northern neighbour on multiple fronts including: NAFTA, softwood lumber, the possibility of a USA import tax, and Buy American rules.

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