Trump vows to solve dairy dispute with Canada

President Donald Trump speaks at Snap On Tools Tuesday

In a joint letter with Wisconsin Gov. Scott Walker, Gov. Andrew Cuomo on Tuesday urged Trump to "address Canada's protectionist dairy trade policies so that they honor their worldwide commitments under NAFTA and other trade agreements".

President Trump on Tuesday picked another fight with another country - slamming Canada for taxing certain milk imports from dairy-farming states like Wisconsin and NY.

"Of course, having a USDA secretary confirmed and having a US trade representative confirmed would be very, very helpful".

Canada has made a decision to impose import taxes on ultra-filtered milk, a protein liq. South Dakota Dairy Producers Association Executive Director Roger Scheibe says they share the same concern about Canada's milk pricing scheme and are hoping the administration takes action. Dairy farmers have already been crippled by years of stagnating milk prices, and one Central New York milk producer - Cayuga Milk Ingredients - has said it could lose 25 percent of its sales after investing more than $100 million in an ultra-filtered milk processing plant.

Trump on Tuesday responded to appeals for help from the dairy industry during an event in Wisconsin, where he also renewed his complaints about the North American Free Trade Agreement.

Trump promises to work with Wisconsin's congressional delegation to get a solution.

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Trump was joined by several Wisconsin Republicans, including Gov. Scott Walker, Lt. Gov. Rebecca Kleefisch, state Assembly Speaker Rob Vos, U.S. Rep. Glenn Grothman, U.S. Sen.

State officials are thanking the company for its support. It's a bad thing that happened to the farmers of Wisconsin.

Morneau and USA counterpart Treasury Secretary Steven Mnuchin will be in Washington on Thursday for meetings that will include central bank governors and officials from the International Monetary Fund and World Bank.

He said the facts don't bear that out and attached a U.S. Department of Agriculture dairy outlook report that "clearly indicates the poor results in the U.S. sector are due U.S. and global overproduction".

"Canada must be clearly and swiftly reminded in a concrete way that dependable trading conditions between our two countries are critically important", the senators wrote.

Most dairy products sent to Canada are subject to heavy tariffs, but ultra-filtered milk from the US wasn't subject to those tariffs because it came into use after NAFTA was approved in 1994. They say Canada can not be allowed to continually impair the value of concessions the USA previously secured under prior trade agreements, nor disrupt global milk power markets to the detriment of companies across the country that rely on them to provide returns to dairy farmers. "And, I've been reading about it, and I've been talking about it for a long time and that demands, really, immediately, fair trade with all of our trading partners and that includes Canada".

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"Together with other dairy exporting countries, including the USA, we have questioned these policies at WTO Committee on Agriculture meetings in Geneva as recently as last month", McClay said. "So we're waiting to see how fast those people can get in place", Brancel said.

Trump also criticized the US trading regime, which calls for a waiting period, and consultations that can stretch to three months or beyond.

Senior finance officials who briefed reporters on the meetings suggest the order would run counter to protections Canada has secured through NAFTA.

"The whole thing is ridiculous".

Tool manufacturer Snap-on says President Donald Trump's visit to the company's headquarters in Wisconsin will highlight "the essential nature of American manufacturing to our nation's future". The policies target exports of ultra-filtered milk.

"So the Americans are not suffering from the current terms of NAFTA and existing trade agreements".

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