State lawmaker: Canada doesn't grasp urgency of milk crisis

President Donald Trump ratcheted up his criticism of Canada on Thursday, slamming the country for protectionist measures it has taken with its dairy industry that Trump says have negatively affected USA dairy farmers.

The President echoed that sentiment Thursday: "We can't let Canada or anyone else take advantage of our workers or our farmers". "And they might give us an answer, but we're going to get a solution, not just an answer, because we know what the solution is, alright?"

But farmers say they don't think those comments will lead to changes here.

Monica and Dave Roskopf say they are thankful but not more optimistic about their future as dairy farmers after President Donald Trump took their side in a dispute with Canada this week.

Dairy farms throughout NY state rely heavily on exporting this product, and they are faced with millions of dollars in losses each year.

Canada's dairy system survived a WTO challenge in 2002.

Ironically, that supply management system was modeled after one created by New Deal President Franklin Roosevelt.

"Canada strongly believes in a rules-based system of trade, and therefore always abides by and upholds the rules that govern trade", Freeland said in a statement.

But critics argue it hasn't worked. If the feds relax restrictions on the dairy market, greater compensation for farmers (as seen in the recent Canada-EU trade deal) will be the likely result - and that will mean another tax bill for Canadians.

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Meanwhile, President Donald Trump addressed the urgency of the issue while speaking in Kenosha Tuesday.

And Mr. Trudeau should remind Mr. Trump that these American statistics are not "alternative facts". But that leaves farmers with excess protein, which is where ultra-filtered milk comes in. Because it's considered a milk ingredient, it's not subject to the same tariffs as milk.

"We're not putting up any tariffs; we're not subsidizing ultra-filtered (milk) to be exported to the United States", said Herman. "It's specifically designed for our market". There's also "flat-line growth" in other dairy manufacturing sectors within NY, he added.

The specific program in question is the National Ingredients Strategy, a type of pricing program that gives incentives for Canadian dairy processors that steer them away from purchasing USA dairy products. "There has been no change in regulation".

Luis Ribera, an agriculture economics expert at Texas A&M University, said that while the ultra-filtered milk issue may technically fall outside the scope of NAFTA, it is a sign of USA anger towards Canada's supply management system.

"More broadly, tens of thousands of dairy farmers will be affected by the larger scope of what Canada is doing, which is using pricing policy to offload milk powder in global markets where it will be competing with US exports", said Chris Galen, a federation spokesman.

Trump said his order would minimize exemptions that allow foreign companies to bid on projects in the USA, something Canada now enjoys under NAFTA.

"We're running at full capacity", he said. "You can not penetrate the American market and have a fair price for producers".

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