Canada’s Ambassador to Washington told the Associated Press this week that Donald Trump is wrong when he says that Canada’s dairy industry trade practices “are very unfair.” David MacNaughton wrote a letter to the governors of Wisconsin and New York to let them know Canada is aware of their request to the president for help with Canada’s dairy practices. “Canada does not accept the contention that its dairy policies are the cause of financial loss for dairy farmers in the United States,” he said. He attached a USDA dairy outlook report to the letter, which he says clearly indicates that the poor performance in the dairy sector is due to U.S. and global overproduction. Canada recently decided to impose import taxes on ultra-filtered milk, which is used to make cheese. It had been imported tax-free but Canada changed direction after dairy farmers there complained. About 70 percent of dairy farmers in Wisconsin and New York are affected by the policy change. The U.S. dairy lobby accuses Canada of disregarding its trade obligations while the Canadian industry accused the U.S. of scapegoating.
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