U.S. President Trump called Canada's dairy supply management system "very unfair" to U.S. dairy farmers.
"I think what we've got to really reinforce with the Americans is that our prosperity is intricately tied together", said MacNaughton. Critics often point to Canada's supply management system, which they decry as nothing more than a protectionist barrier. "And it's not gong to be happening for long".
Dairy industries organizations in Australia and New Zealand said Wednesday that they would support the USA if it took the dairy dispute to the World Trade Organization, following Trump's declaration that existing rules are unfair, the Financial Post reported.
Reint Dykstra, a dairy farmer of 30 years in Salisbury, is used to hearing comments such as Trump's, saying Canada's supply management system - which regulates production of dairy, as well as chickens, turkeys and eggs by using a quota system and fixed prices, created to ensure farmers stay in business - is often the subject of trade fears.
Gov. Scott Walker and New York Gov. Andrew Cuomo sent a joint letter to Trump on Tuesday urging him to address Canada's dairy trade policies.
Despite the dust-up over dairy, MacNaughton struck an upbeat tone while discussing Canada-U.S. trade with reporters in Halifax on Wednesday.
Canada denies that its dairy policies cause losses for USA dairy farmers.
There's also what's called ultra filtered milk that is not subject to a tariff.
The most recent flashpoint came past year, when Canada's dairy farmers struck a new pricing deal with processors including Saputo Inc (SAP.TO) and Parmalat Canada [PLTPRC.UL].
American officials have stopped short of identifying what type of retribution a continuation of milk product exclusion would produce.
Canada doesn't export any ultra-filtered milk to the US and simply wants to find a domestic market for a product that is in too great a supply relative to consumer demand, he said.
If the feds relax restrictions on the dairy market, greater compensation for farmers (as seen in the recent Canada-EU trade deal) will be the likely result - and that will mean another tax bill for Canadians.
Canada's ambassador to Washington said Tuesday night that President Donald Trump is wrong when he says Canada's trade practices in the dairy industry are "very unfair".
Why did Donald Trump attack the Canadian dairy industry? So they're displacing the USA product that's coming into Canada, " said von Massow.
Canada denies that its dairy policies cause losses for USA dairy farmers, and blames instead overproduction by the United States and globally, which the highly regulated Canadian system avoids.
The ambassador also noted that the current dairy trade balance favours the U.S. five to one - a point he underscored again during a news conference on Wednesday.
The U.S. dairy industry has won over a president who is predisposed to fighting against any trading partner with a perceived advantage over American workers.
If you've a taste for irony, you could note the spectacle of a man criticizing another country's protectionism at a rally to announce a protectionist "Buy American/Hire American" initiative. The move comes as 75 Wisconsin dairy farms won't have buyers for their milk beginning May 1st because of the restrictions.