Canada's Trudeau defends dairy system after Trump blast

U.S. President Donald Trump again attacked Canada's dairy industry Thursday while calling the North American Free Trade Agreement (NAFTA) a "disaster for our country".

At a speech to factory workers in Wisconsin on Tuesday, Trump criticized Canadian dairy regulations and supply management system, calling trade between the two countries a "one-sided deal" that doesn't allow USA farmers to compete fairly.

Gentiloni, who had been in Washington on Thursday, said Canada and Italy share a common, pro-trade world view and that they live in "interesting times". His administration plans to roll out its ideas to renegotiate the trade deal in two weeks.

"Decision makers make statements that indicate a position that they intend to take and we're in the business of responding to positions that are actually taken", Carr said when asked about Trump's comments. Their milk buyer dropped them suddenly over the policies, effective May 1, and the suddenness of the move gives them little time to find another buyer. He also wrote that "technical barriers" make the U.S. more protectionist than Canada, and his nation isn't a cause of the global oversupply that has hurt American farmers. And with Trump's popularity in rural areas, especially with farmers, the issue was ripe for his involvement. Rather, he says, the change in Canadian policy. At this point, it's hard to say.

Canada has had steep tariffs in place to bolster its own dairy industry, which have been allowed by NAFTA.

"We can't produce milk against the U.S. Treasury", he said.

Dairy policy aside, Wolf says the current US administration is "absolutely determined to be protectionist and that is bad news for Canada and the world".

Earlier this week, in Kenosha, Mr. Trump had promised to stand up for dairy farmers, though he didn't explain the issue, which, according to the Milwaukee Journal Sentinel, is likely a change in Canadian dairy pricing policies that undercut about 75 Wisconsin dairy farmers earlier this month.

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Several petitions have been sent to policymakers looking for relief.

But Easter noted that the USA has a lot invested in trade with Canada. "A protracted dispute will only drive up the cost of wood and homes for USA consumers", Freeland said. "The U.S. has a $400 million dairy surplus with Canada so it's not Canada that's the challenge here", he told Bloomberg.

Canadian leaders seem to be sticking to their guns.

Trump's criticism came two days after he first knocked Canada's impact on Wisconsin dairy farmers during a visit to the state on Tuesday, when he vowed the U.S. would "stand up for our dairy farmers".

Of course, blasting Canada's dairy industry also means wrangling with its unflappable prime minister, and Justin Trudeau has already dismissed Trump's fighting words.

Canada exported about $113 million worth of milk to the US previous year but imported $557 million, meaning a dairy dispute would hurt the USA more than Canada.

"When it comes to wasteful destructive job killing regulations, we are going to use a tool you know very well - it's called the sledgehammer", he said. "But we have to be aware of the fact that this push goes against free trade as a catalyst for world growth. that is why we need to work politically, culturally and economically to fight against this trend".

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