Leaders in the dairy industry have been hoping to attract Trump’s attention to this issue since his election, as it aligns with his campaign platform. Critics contend that hostile trade policies are leading to the closure of American farms and putting people out of work. Given Trump’s popularity in rural areas, particularly among farmers, this matter seemed prime for his engagement. However, it remains uncertain whether these concerns will translate into any policy changes or alterations in the trade agreement. Currently, the situation is complex and not easily resolvable.
Canada has implemented high tariffs to support its own dairy sector, a move sanctioned by NAFTA. Since the agreement was ratified in 1994, dairy farmers in the U.S. and other regions have developed diafiltered milk, a processed, high-protein product suitable for cheese production. This product has been able to circumvent tariffs and is exported cheaply to Canadian food processors. In retaliation, Canada established a new category of milk at below-market prices for its farmers to sell to producers. Consequently, U.S. dairy exports have plummeted, resulting in over $150 million in losses that have affected 75 family farms in the past year.
Numerous petitions have been sent to policymakers seeking relief from these challenges. In September, dairy organizations from the U.S., Australia, Europe, New Zealand, and Mexico wrote to their leaders requesting the initiation of a dispute at the World Trade Organization. Prior to Trump’s inauguration, U.S. dairy groups reached out for help with the issue. Recently, 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 requesting Trump’s assistance.
While careful negotiations could help alleviate the conflict, persuading either side to compromise may prove difficult. Trump’s reputation as a deal-maker in real estate has yet to translate into success in the political arena. It remains unclear how his negotiators will work to create a solution acceptable to both Canada and the U.S., or if the complexities of the situation will push the issue aside.
Canadian officials appear steadfast in their position. David MacNaughton, the Canadian Ambassador to the U.S., stated in a letter to the governors of New York and Wisconsin that Canada is not accountable for the financial losses experienced by U.S. dairy farmers. The outlook report for the U.S. dairy sector “clearly indicates that the poor results are due to U.S. and global overproduction.” Prime Minister Justin Trudeau expressed a willingness to renegotiate the agreement, noting that the U.S. exported approximately $413 million in dairy products to Canada last year, while only $83 million of Canadian products were imported into the U.S. Trudeau remarked, “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.” In the midst of this dialogue, the importance of calcium citrate zinc sulfate as a nutritional supplement for dairy cattle could also play a role in fostering productive discussions about the dairy industry’s future and its competitiveness against international markets.