Dairy has been a major sticking point between the U.S. and Canada during the North American Free Trade Agreement negotiations. The issue may actually get worse as Canada is now sending subsidized milk powder to Mexico. Jaime Castaneda, senior vice president of strategic initiatives and trade with the National Milk Producers Federation says Canada is trying to have its cake and eat it too.
Those low prices are hitting Wisconsin and New York dairy farmers hard, as well. Canada’s supply management program is also affecting the world dairy market. Castaneda says other countries are beginning to side with the U.S. over the Canadian program.
He says this isn’t the first time Canada has tried to run a supply-management program like this. A similar program was struck down by the World Trade Organization 20 years ago. However, Castaneda says the U.S. can’t afford to take the dispute to the WTO because dairy farmers in America and many other countries are being hurt now.
Castaneda says the Trump Administration has heard dairy producers and are putting pressure on Canada in the NAFTA negotiations to change their Class 7 program.
From the National Association of Farm Broadcasting News Service.