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U.S. Won’t Back Down From Canada Dairy Fight – With or Without NAFTA

(Bill Tomson – AgriPulse)

The U.S. will not be backing down from demands that Canada dismantle its dairy supply management system even if the two countries and Mexico fail to renegotiate the North American Free Trade Agreement, according to U.S. government and industry officials.

The U.S. blames Canada’s tightly controlled dairy program, including the controversial Class 7 pricing mechanism, for distorting international markets. The U.S. continues to demand Canada dismantle it as part of the NAFTA renegotiations, but even if that fails, the U.S. is “actively considering” filing a complaint against Canada in the World Trade Organization, a U.S. government official confirmed for Agri-Pulse.

The damage being done to international dairy markets is just too harmful to U.S. farmers, processors and exporters, and the situation will only get worse unless Canada changes its ways, the sources say, some of them speaking on condition of anonymity. Click here to read more.

Related: Darigold Economist: Canada Milk Policy Spoiling Market (Capital Press)