The United States wants Canada to eliminate what it calls an underhanded dairy-pricing class.
Dairy Cows Feeding on the Farm. (Photo/CTV News)
U.S. Secretary of Agriculture Sonny Perdue told Reuters News after a meeting with Agriculture Minister Lawrence MacAulay earlier this week that it’s undercut American dairy sales to Canadian processors.
Canada’s dairy farmers struck a new pricing deal last year, known as Class Seven. This new deal took effect in February. Foreign industry groups say the deal prices domestic milk ingredients used to make cheese and yogurt below cost.
Perdue’s comments come as the U.S. attempts to renegotiate the NAFTA agreement with Canada and Mexico. He says it’s allowed Canadian farmers to overproduce milk, contributing to depressed world prices.
Currently, Canada protects its dairy sector from foreign competition with high tariffs on imports above a quota. It also controls domestic production to support prices.
According to numbers from the Federal government, bilateral trade with the U.S. in agriculture and food was worth $62-billion in 2016.
– Posted by BET
