U.S. President Donald Trump promised, during a visit to Wisconsin a cheese-making state that he will defend U.S. dairy farmers who claim they are being hurt by Canadian protectionist trade policies.
|Under the present NAFTA agreement Canada's dairy sector enjoys protection by high tariffs. There are also production controls that ensure the prices for products are sufficient for farmers to make a living. The Canadian dairy system is not a free-market system but involves supply management by the Canadian Dairy Commission(CDC):|
The Canadian Dairy Commission (French: Commission canadienne du lait) is a Canadian government Crown corporation created in 1966 under the Canadian Dairy Commission Act (1966–1967). According to the Act, CDC is mandated to "provide efficient producers of milk and cream with the opportunity to obtain a fair return for their labour and investment, and to provide consumers of dairy products with a continuous and adequate supply of dairy products of high quality."The CDC also chairs the Canadian Milk Supply Management Committee that coordinates industrial milk supply in Canada. The Minister of Agriculture and Agri-food is responsible for the CDC. The U.S. and some other countries hate the system since global companies want a purely market-based system in keeping with neoliberal policies in the interests of global corporations.
In total, there are about 17,000 Canadian farms that operate under Supply Management; this is about 8 percent of all farms in Canada. The dairy industry is the largest of the three supply-managed industries in Canada, with 11,280 farmers operating in 2016 . There are about 2,700 poultry farmers, and fewer than 1,000 egg farmers. Dairy is the largest industry of the supply-managed industries, but it is also Canada's third largest agricultural commodity in terms of farm cash receipts, making it a significant commodity for Canada .