Canada's 'powerful' dairy sector is in Trump's trade crosshairs

Canada's 'powerful' dairy sector is in Trump's trade crosshairsImage source, Bloomberg via Getty ImagesByNadine YousifSenior Canada reporterPublished57 minutes agoCanada's dairy industry policy is among the most politically sacrosanct in the country. It has also long been a thorn in the side of Donald Trump.Now, Canada's dairy supply management system is back in the spotlight after the US president singled it out as one of three main irritants used to justify a 50% tariff on $20bn worth of Canadian goods imported to the US, which is set to come into effect in August.Trump argues the system, which sees production quotas, set pricing, and import quotas on dairy, eggs, and poultry, is "unreasonable" to American farmers who want to sell their product north of the border.Canadian politicians will now have to decide whether to stand firm on its popular supply management system or risk the ire of the public and a politically "powerful" dairy industry by attempting to fix this issue with Trump.So far, they have indicated that dairy is a non-starter.Quebec Premier Christine Fréchette, whose province is home to Canada's largest dairy industry, said on Tuesday that supply management was non-negotiable.And last week, US-Canada Trade Minister Dominic LeBlanc told the BBC that the system "is a cornerstone of Canada's economy and our rural communities" that "ensures that Canadians have access to high-quality dairy products made by Canadian dairy farmers".They argue that it supports Canadian farmers and guarantees price and supply stability for food staples.Dairy farmers have also been known to stage protests - complete with tractors and cattle on Parliament Hill - when faced with possible concessions in trade talks."It is the most powerful political lobby in the country that stretches across all of the major political parties," said David Clement, a Canadian policy director at the internation...