Canada’s Ambassador David MacNaughton refuses the allegations made by Donald Trump relating to usage of unfair trade practices in promoting their Dairy sector. There were allegations from Governors of Wisconsin and New York stating that the trade practices of Canada are responsible for the financial crisis faced by the farmers in the US. Both the Governors have sent a letter to the US President to investigate and address the Canadian Dairy farming trade practices to resolve the issue. On the other hand, David MacNaughton highlighted his point to deny the allegations through the report published by the U.S. Department of Agriculture dairy outlook.
According to the report published, the main reason for the financial losses of the US farmers is due to the overproduction of the dairy goods across The US and other major producing countries. Donald Trump made a statement that Canada has been very unfair towards the dairy farmers and they would take some actions against it. On the contrary, David MacNaughton claims that Canada doesn’t have any protection policy towards the Dairy farmers and has made every attempt to keep them out of the US market by adding many technical barriers.
In fact, they have imposed additional duties and import taxes on ultra-filtered milk, which is a protein-rich concentrate useful for preparation of cheese. Nearly 70 dairy producers were affected after imposing of this taxes in both the US and Canada. Canada has been worried about their trade relations with the US and hence Canadian Prime Minister Justin Trudeau had sent some of his ministers to justify and clarify their doubts and protect their trade relations. Donald Trump claims the North American Free Trade Agreement (NAFTA) to be one of the worst deal agreements for the producers in America. Donald Trump also expects to have some major changes to the policies and procedures of the NAFTA trade agreement that would be in favor of the people of the US.
The concern has been legitimate because spoiling trade relations with the US would hamper the exports of Canada to large extents. Currently, Canada’s 75 percent exports go to the US and Canada has been very protective about their good going to the US other than the Northern countries. Imposing high taxes on the import of dairy products makes it three times costlier in the market. The US has been very concern about these strategies applied by Canada which leads to a loss to the American dairy farmers and producers.