The United States is stepping up pressure on Canada to scrap protections for its dairy industry in exchange for striking a new North American free-trade deal.
A trio of senior U.S. officials zeroed in on Ottawa's supply managed milk sector and its restricted market to U.S. dairy farmers as the major issue preventing a breakthrough in NAFTA talks, which passed the latest in a series of U.S.-imposed deadlines on Friday with no resolution.
U.S. Agriculture Secretary Sonny Perdue demanded that Canada end its low-price milk-proteins policy to reach an agreement. Canada has encouraged overproduction and flooded export markets for milk proteins used in cheese and yogurt, hurting U.S. dairy farmers, Mr. Perdue said in an interview aired on Sunday on C-SPAN television.
Republican Tom Reed, a member of the influential House ways and means committee, urged Ottawa on Sunday to allow U.S. farmers more access to its market to assuage U.S. President Donald Trump, who has consistently complained about this issue as talks have dragged on.
The President's assertions that Canada has enjoyed lucrative advantages over the United States have not let up, and last week at a rally he threatened the “ruination” of the Canadian economy by imposing steep tariffs on imported vehicles if the sides can't reach an agreement.
Larry Kudlow, Mr. Trump's chief economic adviser, said Canada’s insistence on maintaining protections is the major stumbling block. “Milk, dairy, drop the barriers, give our farmers a break and we can fix some other things,” Mr. Kudlow recently told Fox News.
Canada has imposed tariffs on imported dairy products of up to 298 per cent. About 5 per cent of Canada’s market for butter, cheese and other dairy products has been opened recently to imports through trade agreements with Europe and Asia. Another 5 per cent is allowed in tariff-free through trade with the United States and other countries...
Foreign Affairs Minister Chrystia Freeland said that a trilateral deal remains possible, but not at any cost to the Canadian economy. She stressed the need for flexibility on both sides...
This was excerpted from 10 September 2018 edition of The Globe and Mail.