Canada is facing pressure to open up its protected dairy market to more US milk and cheeses in talks to renegotiate the North American Free Trade Agreement that resumed Saturday in Ottawa.
Trump blamed Canada’s restrictions on dairy imports for the economic woes of dairy farmers in New York and Wisconsin.
With several small US dairies looking to emulate Canada’s supply management system, it is unlikely US negotiators will launch a full frontal attack on Canadian dairy.
He pointed out that the United States has a surplus in dairy trade with Canada, with Can$110 million ($89 million US) in Canadian dairy exports to the US last year versus Can$550 million in imports from the US.
The system also makes it harder for young Canadians to enter the industry, he said, because “a good dairy cow costs about Can$2,000 but the right to sell its milk costs Can$27,000 annually.”