That was the backstory behind the USA president's surprise decision to call out Canada by name Tuesday, putting dairy farmers north of the border on notice that they are in America's fair-trade sights.
At about the same time that the President was taking aim at Canada today, Prime Minister Justin Trudeau told Bloomberg in an interview that the side with a surplus in dairy trade is the US, not Canada. "It's going to take awhile", Dave Roskopf said.
In Canada, he continued, "some very unfair things have happened to our dairy farmers and others and we're going to start working on that".
Other processors have told the Roskopfs that they are at capacity and can not add farms, Monica Roskopf said.
Members of Congress from Wisconsin and NY contend Canada is violating trade agreements, and they plan to raise the issue with President Donald Trump.
"They (governors) want to be seen to be standing up for their dairy farmers and I think the Government of Canada wants to be seen to be standing up for its dairy farmers", he said. Production is controlled through a regulated quota system, and foreign competition is thwarted through steep tariffs. We hear loud and clear from the federal government that they support supply management.
Proponents of the system say it keeps prices stable and protects small farmers from seasonal fluctuations.
Despite Trump's promises to find a "solution" to the dispute, Stephenson said dairy farmers aren't holding their breath.
President Donald Trump has shifted his sharpest economic criticism away from the southern US border and toward the neighbor to the north.
"It's unclear what Mr. Trump really had in mind". The affected farmers lost contracts with USA dairy processors that export to Canada.
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Over the years, technology advanced and milk processors invested to make high-protein dairy ingredients with numerous applications.
Dumontier says it was intentionally created to get around those tariffs. "In particular, both Canadian and American farmers have been dealing with worldwide pressures of low world prices and a surplus of skim milk solids". "It's specifically designed for our market".
Canadian dairy producers recently made a decision to collectively lower their prices in order to compete with cheaper, American imports.
"There are a lot of milk producers in the USA that are complaining about it". "There has been no change in regulation". And we have a supply management system that works very well here in Canada.
MacNaughton backed the organization's position that Canada has done nothing to block US imports, and that the predicament is the result of an "over-saturated" market that has led to lower prices.
The U.S. now enjoys a $400-million dairy surplus with Canada, "so it's not Canada that is a challenge here", he said Thursday in a question-and-answer session with Bloomberg television.
"Let's not pretend we're in a global free market when it comes to agriculture", Trudeau said.
"What's happened to you is very, very unfair". About 70 dairy producers in both US states are affected.
MacNaughton writes that the Canada dairy industry is less protectionist than that of the U.S, which he says has employed technical barriers to keep Canadian dairy out of the US market.
McCart of the Farmers' Association agrees.