Donald Trump goes gunning for Canada's Laughing Cow

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Dykstra said the USA has increased its dairy exports to Canada by 17 per cent over the last few years.

Trump's decision to call out Canada by name Tuesday put dairy farmers north of the border on notice they were in America's fair-trade sights.

"We're not putting up any tariffs; we're not subsidizing ultra-filtered (milk) to be exported to the United States, " said Herman.

"This could be devastating to our dairy sector and to our entire supply management", said the MP.

"We're going to get together and we're going to call Canada, and we're going to say, 'What happened?' And they might give us an answer, but we're going to get the solution and not just the answer, because we know what the solution is".

Trump said in Wisconsin Tuesday that he'll work on a solution.

"Dairy trade between Canada and the U.S.is important and the sectoral trade balance massively favours the USA, at around 5 to 1", the letter said.

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"As a matter of fact, Canada's dairy industry is less protectionist than that of the USA, which has employed technical barriers to keep Canadian dairy out of the US market".

"Dairy trade between Canada and the U.S.is important and the sectoral trade balance massively favours the USA, at around 5 to 1", he wrote in a letter to New York Governor Andrew Cuomo and Wisconsin Governor Scott Walker this week.

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At least one local dairy farmer on Wednesday suggested an end to supply-management would mean the end of his family farm.

That's because in recent years there been an increasing demand for high-fat products, such as butter, so more milk is needed to produce it.

Certainly not. Where dairy trade is concerned, tensions between Canada and the US have been increasing for months now.

Most Canadians don't get guaranteed prices based on their costs of production; most don't get a free pass from competition thanks to government-imposed tariffs or quota-based barriers to entry.

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President Donald Trump pledged to stand up for dairy farmers during a visit to Kenosha on Tuesday, saying that the USA must have fair trade with all trade partners, including Canada.

"It's another typical one-sided deal against the United States", President Trump said.

Last year, two public policy analysts with the Montreal Economic Institute went as far as to condemn supply management for driving tens of thousands of Canadians into poverty while dairy farmers get fat.

The U.S. dairy groups, however, said their difficulty in exporting dairy products to Canada were a "direct consequence" of Canada's National Ingredients Strategy and new Class 7 milk pricing program.

And Dairy Farmers of Canada remains confident the federal government will "defend the Canadian dairy industry", according to a statement to CBC. West Canadian Select already trades at a $13-or-so discount to world prices, since 100 per cent of the 2.9 barrels-a-day in crude exports head to a single market.

Ruiter sees Trump's tough talk as an attack on Canada's milk supply management system.

Canada's dairy industry has been critical of where Wisconsin has placed blame. "The Canada-U.S. partnership is a model to the world. I think processors will step up and help".

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