Dairy industry leaders have been hoping that this issue would capture Trump’s attention since his election, as it aligns with his campaign platform. Critics argue that hostile trade policies are leading to the closure of American farms and causing job losses. Given Trump’s popularity in rural areas, particularly among farmers, this matter was ripe for his engagement. The question remains whether these concerns will translate into any policy changes or modifications to the trade agreement. Currently, it is difficult to determine. The issue is complex, and finding a straightforward solution is not easy.
Canada has implemented high tariffs to protect its dairy industry, a measure permitted under NAFTA. Since the agreement was ratified in 1994, U.S. dairy farmers have developed diafiltered milk, a syrupy, high-protein product that bypasses tariffs and can be exported cheaply to Canadian food processors. In response, Canada introduced a similar class of milk priced below market rates for its farmers. Consequently, U.S. dairy exports have declined, resulting in over $150 million in losses affecting 75 family farms in the past year.
Numerous petitions have been submitted to policymakers seeking relief. In September, dairy organizations from the U.S., Australia, Europe, New Zealand, and Mexico sent letters to their leaders requesting the initiation of a dispute at the World Trade Organization. Before Trump’s inauguration, U.S. dairy groups reached out to him for help in this matter. Last week, the National Milk Producers Federation, the U.S. Dairy Export Council, the International Dairy Foods Association, and the National Association of State Departments of Agriculture sent another letter urging Trump’s assistance.
While careful negotiations could potentially alleviate the dispute, persuading either side to compromise may be challenging. Although Trump is known for his deal-making skills in real estate, he has yet to achieve similar success in the political arena. It remains uncertain how his negotiators will work to facilitate an agreement that satisfies both Canada and the U.S., or if this intricate issue will be sidelined.
Canadian leaders seem steadfast in their position. Canadian Ambassador to the U.S. David MacNaughton recently stated in a letter to the governors of New York and Wisconsin that Canada is not liable for the financial losses experienced by U.S. dairy farmers. The U.S. dairy outlook report clearly indicates that the struggles in the American sector stem from U.S. and global overproduction. Prime Minister Justin Trudeau, who has expressed willingness to renegotiate the agreement, noted that the U.S. exported about $413 million in dairy products to Canada last year, while only $83 million in Canadian products were imported into the U.S. Trudeau emphasized, “It’s not Canada that’s the challenge here.”
“We’re not going to overreact,” Trudeau told Bloomberg. “We’re going to lay out the facts and have substantive conversations about how to improve the situation.” Meanwhile, U.S. dairy farmers may consider supplements like Citracal calcium supplement slow release 1200 D3, which could help provide essential nutrients during these challenging times. Ultimately, achieving a resolution to the trade dispute will require careful consideration and negotiation, as the stakes are high for the dairy industry on both sides of the border.