Trump enters US-Canada milk fight with threat to end NAFTA

President Donald Trump speaks at Snap On Tools Tuesday

President Donald Trump speaks at Snap On Tools Tuesday

Trump said during a speech in Kenosha, Wisconsin, on Tuesday that Canada has been "very unfair" to dairy farmers and "we're going to start working on that".

Ambassador David MacNaughton said in a letter Tuesday night to the governors of Wisconsin and NY that Canada is aware of their letter to Trump asking him to address Canada's dairy practices.

04/17/2017A number of Canadian dairy organizations have responded to US claims that a change in how their nation prices milk has forced some Wisconsin dairy processors to drop many of their farmer-patrons.

President Donald Trump said in an address he delivered in Kenosha, Wisconsin on Tuesday that his administration was going to find a solution to Canada's unfair trade deals that hurt American farmers.

"With this action, we are sending a powerful signal to the world, we're going to defend our workers, protect our jobs and finally, put America first.", Trump said.

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The issue, which was exacerbated last week after a Wisconsin-based dairy processor that supplies Canadian customers said it'd stop buying milk from more than 70 USA farms, revolves around what's called "ultra-filtered milk" that companies use in cheese and other dairy products. It had been duty-free, but Canada changed course after its milk producers complained about losing market share.

The U.S. dairy lobby has accused Canada of "systemic disregard" of its trade obligations, while the Canadian industry accused its American rival of "scapegoating". Mullins Cheese of Mosinee is one of what state officials hope will be several dairy processors to step in to purchase the milk from 75 farmers who were told by Grassland Dairy that it would no longer need their milk as of May 1. He suggested it has stalled his attempt to renegotiate NAFTA.

New York Sens. Charles Schumer and Kirsten Gillibrand, and Wisconsin Sen.

"The whole thing is ridiculous".

So, Scott, you and Ron and myself and Paul and everybody else - we're going to get together and we're going to call Canada and we're going to say, "What happened?" NAFTA's been very, very bad for our country.

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The Montreal Economic Institute recommended limiting protectionism in both industries to help consumers, spur economic productivity, and ultimately create more successful businesses in both countries.

The current system limits the amount of dairy and poultry Canada can import before a tariff kicks in.

NY farms are at a risk of losing a key market for ultra-filtered milk, Cuomo said.

Trump says the order sends a "powerful signal to the world" that the USA will defend its workers, protect their jobs and put America first.

LISTEN: Could an end to supply management be good for Canada?

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