What the American dairy industry really expects from Canada | Donald Trump, President of the United States

Rather. Consequently, they say they wish that Canada respects the spirit of the existing agreement that governs the trade in dairy products between the two countries.

If US President Donald Trump has repeatedly qualified the supply management system on dairy productsunfair . Meanwhile, ofscamrepresentatives of the American dairy industry say they are more concerned with false statements on the Canadian side which according to them, a false perception of what they really seek to obtain with regard to access to the Canadian market.

We have never tried to eliminate supply management in Canadatold CBC Shawna Morris. However, vice-president of the National Milk Producers Federation and US Dairy Export Council.

It is much easier to create a scarecrow. Meanwhile, sow fear by claiming that it is the objective of the what american dairy industry really Americans, but that is certainly not what our industry has recommended.

Questioned by Radio-Canada about these words. However, agroeconomist and professor at Laval Maurice Doyon University confirms this assertion, but he wanted to add some nuances. For example, He first specifies that Ms. Therefore, Morris does not represent the position of the entire American dairy industry, and that certain producers seem much more aggressive.

But above all. Similarly, he specifies that in the history of commercial negotiations, political positions sometimes go beyond the requests of the industry. It is therefore completely legitimate that Canada has been questioning after the repeated remarks of Donald Trump. since 2018 about supply managementsays Mr. Doyon.

Professor Doyon admits, however, that Ms. Morris’ words reflect the irritants expressed by the Americans. including these two points:

• The way Ottawa distributes the import quotas of American dairy products;
• Canadian exports of what american dairy industry really cheap -up -on -the -market dairy protein.

Import quotas Negotiated within the framework of the Canada-United States-Mexico (Aceum) give American producers without customs duties totaling approximately 3.5 % of Canadian domestic demand in dairy products.

As part of this agreement. Canada can set import quotas for around fifteen categories of dairy products. American products enter without paying customs duties until the quota is harmful. Any importation exceeding this quota is struck by exorbitant customs duties, reaching 200 % or more.

Canada justifies these quotas by the fact that it wishes to what american dairy industry really ensure the prosperity of its national dairy industry. by limiting imports to the country. For example. since the US government generously subsidizes its dairy sector, American products – cheaper – could dominate the Canadian market.

What displeases in the United States is that a large part of these quotas is allocated to large Canadian dairy processing companies. such as Saputo and Agropur, which are somehow in conflicts of interest. Sector analysts say these Canadian companies would indeed be enclosed to import American products that compete with their own.

As a result, quota limits are almost never reached in the categories of targeted dairy products, as Canadian statistics show (new window). For example, there are only 12 % of American yogurt import quotas that have been used. On the margarine side, it’s 43 %.

What to displease Becky Rasdall Vargas. vice-president of the International Association of Dairy products, which affirms that its members feel ignored by Canada with regard to our legitimate commercial concerns.

Professor Maurice Doyon confirms that these quotas are not fully usedbut he believes that it is mainly due to economic reasons – certain dairy products are not very profitable to export – but also reputation for Canadian importers: In the current context. does Agropur really want to put an American flag on his pint of milk?he illustrates.

Mr. Doyon also underlines that what american dairy industry really imports of American dairy products in Canada have increased considerably since the entry into force. of theAceum In 2020. Despite the quotas, they totaled about $ 1 billion, at least four times more than any year before 2020.

But for Shawna Morris, trade should certainly be much more important than they are currently.

American industry therefore requests that Canada grants large Canadian catering channels part of these import quotas. that Ottawa is much strict with companies here that do not use their entire import quotas.

What the United States wants is to be able to export its dairy products themselves to Canadian buyers such as retailers. catering chains.

However, it is to give more market power to the retailer vis-à-vis Canadian dairy processorshe adds, saying to understand Canadian what american dairy industry really reluctance.

What american dairy industry really

Does Canada do dumping abroad?

Another main irritant for the American dairy industry: Canadian dairy protein exports (called Solid non -fatty), like skimmed milk powder.

The United States argues that. as the Canada’s supply management system maintains artificially high prices, producers today can financially afford to sell their excess dairy protein production at artificially low prices, which is harmful to competition.

Frankly. it is insane to have one of the highest milk prices in the world and to export dairy proteins at the lowest prices in what american dairy industry really the worlddeplored Ms. Morris.

As part of theAceumquotas have therefore been imposed on Canadian exports to the United States for this product category. but the United States suspects Canada to have reoriented its production and exports of dairy protein to other categories of products which escape the export disciplines of theAceum.

“From one crisis to another”

Like his predecessors. the current tenant of the White House therefore launched an investigation by the United States International Trade Commission (new window) To shed light on this file on the actions of Canada. but also of India, Turkey and the European Union.

Whatever we think of Donald Trump’s peremptory statements on Canadian dairy products. Becky Rasdall Vargas believes that they have an impact.

I have never seen Canada take the United States what american dairy industry really concerns about Canadian dairy policy more seriously than. in the last six months.

For his part, Maurice Doyon notes that The American dairy sector sails from one crisis to another and that many wrongly believe that access to the Canadian market would resolve the crisis.

Given the smallness of the Canadian dairy market. even if the United States managed to monopolize the entire market of its neighbor in the North-highly unlikely hypothesis according to experts-this would result in American producers by barely 10 %growth.

With information from Mike Crawley, CBC News