Dairy farmers operate in a regulated market in Canada, an irritant in trade relations with other countries. (Black Press files)

Milk and chicken Donald Trump’s latest Canadian trade targets

Trade battle may have some benefits for B.C. in short term

B.C. businesses are watching closely as Canada’s trade dispute with the U.S. heats up, with the latest threat directed at protected dairy, egg and poultry production.

Soon after extending its “national security” tariffs on imported steel and aluminum to include Canada, U.S. president Donald Trump took to Twitter to warn of demands for increased access to the Canadian agriculture market.

“Canada has all sorts of trade barriers on our agricultural products,” Trump tweeted. “Not acceptable!”

Canada’s government-protected dairy, egg and poultry market has been a trade irritant for the U.S. and other countries for years. Only minimal foreign access to those markets was given up in the recently concluded Canada-European Union trade deal, and the Trans Pacific Partnership discussions that Canada has been involved in.

There is an upside to the trade war that has seen Canada retaliate with tariffs on such items as maple syrup and toilet paper, said Dan Baxter, director of policy development at the B.C. Chamber of Commerce. But it is a temporary one that some are calling a “patriotic effect,” where consumers start seeking out Canadian products to show support.

“That’s a very short-term uptick benefit,” Baxter said. “The overall long-term trend when you get into these kinds of trade wars, and of course the Canadian government using very understandable counter-measures, ultimately that hurts consumers and businesses on both sides of the border.”

Rio Tinto Alcan’s recently modernized smelter at Kitimat is faced with a 10-per-cent tariff on sales to the U.S., which Baxter said is likely a side effect of Trump’s focus on its trade imbalance with China.

Canada has had an integrated aluminum market with the U.S. going back 100 years, not only for manufacturing but as part of its NATO and NORAD defence agreements, and before that its cooperation during World War II, he said.

Trudeau was asked about farm subsidies in an appearance on NBC’s Meet the Press program on Sunday, and he acknowledged that Canadian negotiators were “moving towards flexibility” on milk and other products.

“I think they want a better deal on their auto sector from Mexico and I think they want more access on certain agricultural products like dairy in Canada,” Trudeau said.

Trump economic advisor Larry Kudlow said Tuesday the president is leaning towards negotiating separate deals with Canada and Mexico.

Baxter said Canada has provided some access to its agricultural market in the EU and TPP agreements, but received substantial access to foreign markets in exchange. It’s “ironic” that Trump pulled the U.S. out of the TPP, when it gave the U.S. additional farm products access to Canada that he is concerned about now.

Just Posted

Election 2018: Kim Richter withdraws from mayor’s race, runs for council instead

In a Facebook post, Richter announced she will seek another term on Township council

Langley trampoline gymnast off to Peru for world qualifiers

The gymnastics club is holding an open house this Saturday, Aug. 18, with free drop-in sessions.

VIDEO: Langley RCMP officer and brother lead Amazing Race Canada Heroes Edition

Courtney and Taylor Callens have become the team to beat

B.C. declares state of emergency as more than 560 wildfires rage

This is only the fourth state of emergency ever issued during a fire season

Trinity Western men’s soccer team starts California trip with a win

Spartans use their ability to execute on set pieces to claim a 3-2 victory

‘Queen of Soul’ Aretha Franklin has died

Publicist Gwendolyn Quinn reports Franklin passed Thursday at 9:50 a.m. at her home in Detroit

Missing B.C. hiker, dog found safe after 3-day search

Cranbrook hiker had been missing since Sunday, August 12, near Jumbo Pass.

UPDATED: B.C. RCMP dismantle Kinder Morgan protest camp

RCMP say they will enforce a court injunction today and remove Trans Mountain pipeline protesters who have been camped outside a Kinder Morgan terminal in Burnaby.

5 to start your day

RCMP evict Kinder Morgan protest camp, two girls go on a nighttime bus adventure and more

Italy says death toll will mount in Genoa bridge collapse

Authorities worried about the stability of remaining large sections of a partially collapsed bridge evacuated about 630 people from nearby apartments.

Former CIA Director: Trump worked with Russians and now he’s desperate

In an opinion piece in The New York Times, John Brennan cites press reports and Trump’s own goading of Russia during the campaign to find Democrat Hillary Clinton’s missing emails.

Church sex scandal: Abuse victims want a full reckoning

Since the crisis exploded in Boston in 2002, dioceses around the country have dealt with similar revelations of widespread sexual abuse.

Baloney Meter: is flow of asylum seekers at Canada-U.S. border a ‘crisis’?

“I think any time you have a government that allows 30,000 people over the course of a short period of time to come into Canada illegally, the impact that that has, that is a crisis,” said Conservative Leader Andrew Scheer.

UPDATE: Baby in stable condition after truck crashes into Surrey home

A 57-year-old man who was driving the truck was taken into police custody, but has since been released

Most Read