PM Trudeau, when you meet President Trump about the milk thing, please tell him that... (self.canada)
submitted 2 days ago by professeurbambam
The American people have pulled the exact same stunt on Canadians oil sands business with their US oil fracking.
The problem of American "ultra-filtered milk", a milk protein rich syrupy mixture designed for cheese production, comes from the fact that the USA produce more milk than the market needs.
Because of CETA (the Canadian European Trade Agreement), Canadian cheese makers had to curtail their yearly production by 17,700 tons, the equivalent of the entire cheese production of Nova Scotia, in order to make room on store shelves for European products.
Because Canadian cheese makers make less cheese, they also need less "ultra-filtered milk". Because it is cheaper for Canadian cheese plants to buy locally produced milk than American milk, then Canadian cheese makers stopped buying American "ultra-filtered milk", which may cause some US farmers to go bankrupt because they produce milk the market doesn't need.
The oil sands in all of this
Because the USA decided to heavily subsidize oil fracking in the USA, the Saudi have lowered the price of oil to try to "kill" the fracking industry in the USA. But because the USA decided to maintain and even increase their oil production through fracking, the price of oil has remained low.
The desire of the USA to produce their own oil through fracking has caused Canadian oil sands to be priced out of the market and has caused Canada to lose tens of billions.
So, in essence, the unraveling of the Canadian oil industry takes its source in the desire of the USA to flood the market with their OWN OIL... Even if fracking is a more expensive production method, resulting in more expensive oil, the US government uses subsidies to make it look cheaper.
This is analogous to the milk production problem, the USA produces too much milk, more than the market needs, and when Canadian cheese makers decided to buy cheaper Canadian milk, the US farmers were priced out of the market, EXACTLY like the Canadian oil sands were priced out of the market by US oil fracking.
At the end of the day, if President Trump is to accuse Canada of unfair practices costing US farmers millions, Canada would also be right to accuse the US government of unfair practice in the oil industry, costing Canadians TENS OF BILLIONS.
**At the end of the day, Mr Trudeau, you cannot allow the USA with getting away with killing our oil industry and, at the same time, letting the USA bully Canada by accusing it of unfair practices in the dairy industry, because, after all, the source of the problem is that the USA produces too much milk, more than the market needs.
Quote
