U.S. President is wrong when he called Canada’s dairy industry practices unfair, said Canada’s Ambassador David MacNaughton on Tuesday. He also added that they are aware of the letter which they sent to Trump to look Canadian dairy practices.
“Canada does not accept the contention that Canada’s dairy policies are the cause of financial loss for dairy farmers in the United States,” MacNaughton said. More to this, he added about Department of Agriculture dairy outlook report of U.S. that “clearly indicates the poor results in the U.S. sector are due U.S. and global overproduction.”
As Canada imposed import taxes on ultra-filtered milk, which was duty-free before but changed after milk producers complained, in U.S. about 70 dairy producers are affected.
In addition, MacNaughton writes the dairy industry of Canada is less protectionist than U.S. He said this because of the technical barriers kept by U.S to keep dairy industry of Canada out of the market. On the other hand, U.S. dairy lobby accused Canada by saying “systemic disregard” because of trade obligations and Canada industry accused U.S. saying “scapegoating.”
Justin Trudeau, Prime minister of Canada, is worried about Trump’s protectionist talk as for him relationship with U.S. is crucial. More than 75% of Canada’s exports go to the U.S., and only 18% is imported from U.S.