Canada can end dairy trade dispute with U.S. by ending pricing irritant: Saputo
MONTREAL — Canada can preserve its dairy supply management system and resolve its trade dispute with the United States over dairy subsidies by ending its domestic milk ingredient pricing system, the head of Canada’s largest dairy processor said Monday.
Despite U.S. President Donald Trump’s tweets denouncing Canada’s supply management system, dairy farmers across the border aren’t petitioning to get rid of that system, said Lino Saputo Jr.
“The milk supply management system has served the dairy industry well since the 1970s and we’ve been through a number of negotiations and a number of trade deals where the milk supply management system has remained in place,” said the Saputo Inc. CEO in an interview.
The irritant to U.S. farmers is the Class 7 pricing agreement struck in 2016 that has effectively restricted U.S. exports of ultra-filtered milk used to make dairy products, he said.