"Dairy trade between Canada and the U.S.is important and the sectoral trade balance massively favours the US, at around 5 to 1", he wrote in a letter to New York Governor Andrew Cuomo and Wisconsin Governor Scott Walker this week.
"The Government of Canada is aware of your letter asking that President Trump address Canada's dairy policies".
Trump singled out Canada's dairy supply management system as putting American farmers at a competitive disadvantage.
Speaking in Wisconsin on Tuesday, Trump singled out Canada's treatment of US dairy products as an example of unfair trade practices. "We'll have to wait and see", Stephenson said.
In response to this push, Canadian farm groups, such as Dairy Farmers of Canada, have argued that programs like Class 6 are domestic policies that help the Canadian market adapt to changes within its borders and are not meant to restrict American exports. "They are using us as a scapegoat", said Gerrit Damsteegt, a Shubenacadie dairy farmer and chairman of the Dairy Farmers of Nova Scotia.
The dispute also could impact the renegotiation of the North American Free Trade Agreement, or NAFTA.
Trump said in Wisconsin Tuesday that he'll work on a solution.
Canada has marketing boards that decide how much milk, poultry and eggs will be sold each year in Canada, then sets a minimum price while keeping foreign dairy products out because that would "screw this whole system up", the Toronto-based National Post newspaper reported in an story on price fixing last fall.
He attached a February 2017 dairy outlook from the U.S. Department of Agriculture to his letter that he said indicates the "poor results" in the American dairy sector "are due to U.S. and global overproduction".
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The ambassador told reporters in Halifax on Wednesday that earlier written appeals from New York Governor Andrew Cuomo and Wisconsin Governor Scott Walker to the White House demanding action on the dairy file contained "factual errors" and noted the goal of his strongly-worded response was to "set the record straight".
Speaking in Kenosha, the president specifically mentioned Canada's dairy supply management system, which he called "one-sided" and one which doesn't let US farmers compete fairly. It had been duty free, but Canada changed its mind after milk producers there complained.
Last year, Gov. Cuomo wrote a letter advising Canadian Prime Minister Justin Trudeau to adjust the policies so dairy farmers in the United States are not harmed.
On the other hand, US dairy lobby accused Canada by saying "systemic disregard" because of trade obligations and Canada industry accused USA saying "scapegoating".
The dairy dispute comes at a sensitive time for U.S.
About 70 dairy producers in both Wisconsin and NY are affected by the new rules, and have lobbied the USA government for action on the file. It is frequently criticized by other dairy-producing countries. "Our relationship with the US administration is extremely strong and I think it's going to pay dividends in the long run".
"We didn't think they would go through with it, at the end of the day it was just a campaign promise", Schumer said.
It also harkens back to the USA election campaign trail, when Trump regularly lashed out at specific industries, and even individual companies, and decried NAFTA as one of the worst deals ever made.
He says nine million U.S.jobs depend on trade with Canada and that message is getting through to Americans.
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