Trump attacks supply management for dairy
The U.S. dairy sector and state agriculture officials urged President Trump to take immediate action against Canada's repeated and escalating disregard for its trade obligations under NAFTA.
The dairy dispute comes at a sensitive time for U.S.
Trade groups for USA dairy farmers have complained that a policy rolled out in Canada recently violates the trade agreement by creating incentives for Canadian processors to use local supplies. That's almost double the value exported to Canada, the country's second biggest export market, according to the United States Department of Agriculture. As many as 70 dairy farms could lose $50 million in sales if Canada's trade policies remain in place.
USA farm groups say that effectively blocks American dairy exports, exacerbating a glut of milk on the American side of the border.
"NAFTA has been a disaster for the United States", he said.
Last week, U.S. Sens. Commerce Secretary Wilbur Ross has blamed the Senate for delaying the confirmation of Trump's US trade representative.
"No longer are we going to allow foreign countries to cheat our producers and our workers out of federal contracts", he said.
White House officials say Trump's order looks at lifting exemptions that allow foreign companies to bid on projects in the USA, something Canada now enjoys under NAFTA. The governors said they wanted Canada to "honor their global commitments under NAFTA and other trade agreements".
The National Milk Producers Federation and U.S. Dairy Export Council traveled to Mexico City in March to meet with Mexican dairy leaders to reinforce its commitment to continue working with that country.
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