Canadian dairy proposal draws wide opposition

Dairy organizations in the U.S., the European Union, Australia and New Zealand are calling on their trade and agriculture officials to stop a new Canadian dairy policy, saying it will expand that country’s already protectionist policies on dairy trade.  The organizations, including the U.S. Dairy Export Council, the International Dairy Foods Association and National Milk Producers Federation, sent a joint letter to the officials on Monday to initiate WTO dispute settlement proceedings to challenge the new policy, once its details are announced.  The new policy — included in the new Agreement in Principle negotiated between Canada’s dairy farmers and milk processors — would favor the substitution of domestic dairy ingredients for imported ingredients and unfairly subsidize Canadian dairy exports, the U.S. groups contend.  If ratified, the agreement would take effect Nov. 1.  Opposing dairy groups believe it would contravene Canada’s World Trade Organization and North American Free Trade Agreement obligations and undermine the intent of the pending Trans-Pacific Partnership trade agreement involving 12 countries and the Canada-EU Comprehensive Economic Trade Agreement.