The U.S. dairy industry is urging governors from 25 dairy-producing states to take action against a policy by Canada that they say could hinder trade of dairy products between the U.S. and Canada.

In a letter to the 25 states, 17 dairy companies said: “Canada plans to proceed with expanding its harmful use of dairy policies to impede trade by implementing a new national ingredients strategy pricing program.”

The program, starting February 1, will allow domestic processors to purchase skim milk powder, liquid skim milk, liquid milk protein concentrates and other products at the lowest market price in the U.S., EU and Oceania for the next seven years, according to Politico.

Last month, U.S. dairy organizations and state departments of agriculture across the country sent a similar letter to President Donald Trump that said Canada’s protectionist policies are in direct violation of its trade commitments under the North American Free Trade Agreement and the World Trade Organization.

Source;  NAFB News