Politics AP FACT CHECK: Trump partly right on Canada's dairy tariffs

15:15  14 june  2018
15:15  14 june  2018 Source:   msn.com

Dem leaders condemn Trump after reversal on G-7 communique endorsement

  Dem leaders condemn Trump after reversal on G-7 communique endorsement Members of Democratic leadership tore into President Trump on Saturday for reversing his endorsement of the Group of Seven (G-7) joint communique and threatening to impose tariffs on Canada. Trump attacked Canadian Prime Minister Justin Trudeau in a set of tweets sent after departing the summit ahead of schedule."Based on Justin's false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U.S. farmers, workers and companies, I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!" Trump tweeted.

Fact Check : Trump tweeted about Canada ’ s dairy tariffs leading up to and after the G7 summit, a gathering of leaders from seven of the world’s most industrialized nations, on Friday and Saturday.

1:37 PM AP FACT CHECK : Trump partly right on Canada ' s dairy tariffs Jun 13, 2018, 12:26 PM. Celebrity deaths force media to examine suicide reporting Jun 13, 2018, 2:32 PM Jason Wu's first fragrance speaks to his childhood Jun 13, 2018, 1

Demonstrators march in Quebec City as they protest the annual summit of G7 leaders on Saturday, June 9, 2018. Leaders of major industrialized nations met in a resort town north of Quebec City after days of escalating conflict over new U.S. tariffs. (Andrew Vaughan/The Canadian Press via AP)© The Associated Press Demonstrators march in Quebec City as they protest the annual summit of G7 leaders on Saturday, June 9, 2018. Leaders of major industrialized nations met in a resort town north of Quebec City after days of escalating conflict over new U.S. tariffs. (Andrew Vaughan/The Canadian Press via AP)

WASHINGTON — President Donald Trump has a point when he lambastes Canada for protecting its dairy farmers with hefty tariffs.

But the United States is hardly innocent when it comes to farm protectionism. And the very real difficulties that U.S. dairy farmers face can't all be blamed on America's neighbor to the north. And in fact, despite Canada's tariff, the U.S. runs a surplus in dairy trade with its northern neighbor.

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President Trump in one of his latest tweets complained about Canada ’ s 270% tariff on dairy imports. President Trump gave a larger figure of 0 billion, which is the deficit for goods only. It’s partly offset by a surplus in services.

A look at Trump's complaints and the complicated reality behind them:

TRUMP: "Canada charges the U.S. a 270% tariff on Dairy Products! They didn't tell you that, did they? Not fair to our farmers!" — Trump tweet on June 8.

THE FACTS: The president is basically right about the tariffs. And the United States has some legitimate gripes about Canadian farm policy. But the whole situation is far more complicated.

Canada has long run an elaborate "supply management" program that effectively shields its farmers from competition. Canada allows a small amount of dairy and poultry imports into the country duty-free or at very low tariffs. Anything above the cutoff is hammered: Consider 245 percent tariffs on cheese. And 298 percent on butter.

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Based on Justin’ s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U. S . farmers, workers and companies, I have Our Tariffs are in response to his of 270% on dairy ! — Donald J. Trump (@realDonaldTrump) June 9, 2018. Partly Cloudy.

AP FACT CHECK : Trump defends trade stance with goosey numbers, goes overboard on economic progress. Canada does indeed impose a 270% tariff on dairy that has kept many U. S . dairy products from making their way from the U. S . to Canada .

The World Trade Organization says Canadian dairy tariffs average nearly 249 percent, compared with the United States' 17 percent.

Dairy is a highly sensitive political issue in Canada. French-speaking Quebec is dairy country. Shielding farmers from competition is one way to placate the province's separatist movement. Canada has also angered American farmers by flooding export markets with cheap skim-milk powder.

Still, Canadian trade policies have had only a "tiny impact" on America's struggling dairy farmers, says Daniel Sumner, an agricultural economist at the University of California, Davis.

Despite Canadian barriers, in fact, the United States last year ran a $474 million trade surplus in dairy with Canada: It exported $636 million in dairy products to Canada and imported $162 million, according to the U.S. Department of Agriculture.

And dairy is barely a blip — 0.1 percent — in U.S.-Canada trade, which amounted to $680 billion last year. As a result of the North American Free Trade Agreement, "99 percent of the trade between Canada and the U.S. is tariff-free," said Bruce Heyman, former U.S. ambassador to Canada. Overall, the U.S. ran a nearly $3 billion surplus in goods and services trade with Canada last year.

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WASHINGTON ( AP ) — President Donald Trump took more swipes at Canada and its prime minister In the air by then, Trump tweeted: “Based on Justin’ s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U. S . farmers Thursday Night. Partly Cloudy.

Based on Justin’ s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U. S . farmers, workers and Our Tariffs are in response to his of 270% on dairy ! — Donald J. Trump (@realDonaldTrump) June 9, 2018. Thursday Night. Partly Cloudy.

U.S. dairy farmers are ailing nonetheless. The price of milk is down nearly 10 percent from a year ago and 38 percent from four years ago. But the main cause of the depressed prices is more elementary than Canada's labyrinth tariff schedule: Too much milk.

"We're just too damn good at what we do," said Gordon Speirs, who runs a 2,100-cow dairy farm in Brillion, Wisconsin. Improved genetics and farm management techniques mean that cows produce far more milk than they used to.

Adding to the glut, the European Union three years ago ended quotas that had limited milk production in Europe as a way to keep prices artificially high. Freed of restraints, European dairy farmers increased production, putting downward pressure on milk prices.

What's more, Canada is hardly alone in protecting its farmers. Even wealthy nations with low overall duties, including the United States, maintain pockets of trade protection.

"It's called politics," said Laura Baughman, president of The Trade Partnership, a pro-free trade research firm.

For example, the United States charges a 350 percent tariff on tobacco products and up to 164 percent on peanut imports. It also maintains strict limits on sugar imports that effectively raise the price of overseas sugar by nearly 57 percent, according to the U.S. International Trade Commission. Food manufacturing companies argue that, as a result, many candy-making jobs have been sent overseas, where sugar is cheaper.

President Trump Complained About U.S. Trade With Canada. Here's What He Got Wrong

  President Trump Complained About U.S. Trade With Canada. Here's What He Got Wrong President Trump lashed out at Canadian Prime Minister Justin Trudeau and the country’s trade relationship with the U.S. Sunday accusing Canada of “charging massive Tariffs” to U.S. businesses. In a tweet sent Sunday while en route to Singapore, Trump pointed specifically to Canada’s 270% tariff on dairy the origin of his frustrations with Canada. Trump’s stinging critique — while technically accurate — obscures the larger trade relationship between the two countries. Canada does indeed impose a 270% tariff on dairy that has kept many U.S. dairy products from making their way from the U.S. to Canada. And many other countries rely on similar measures to protect select domestic industries. But trade policy experts say Canada’s trade relationship with the U.S. is key to our domestic economy. Canada is the top U.S. export market, with the country buying more than $340 billion in American goods and services in 2017, according to data from the U.S. Trade Representative. And, overall, the U.S. has an $8.4 billion surplus with Canada. The U.S. has a significant deficit if only goods are included due to the service-sector-centered nature of the U.S. economy. Protective measures like Canada’s dairy tariff are common around the world. The U.S. uses tariffs to protect a variety of industries from a 350% tariff on tobacco to more 160% on shelled peanuts. In other cases, such as sugar, the U.S. has crafted a complex program to protect domestic industry by limiting imports.

So is Trump right on tariffs ? Yes and no. Yes, Canada has high milk tariffs beyond the allowed quotas, with an average duty of 218.5 percent on dairy . That’ s partly politics -- dairy farmers are a powerful group -- and at least partly business. The existing dairy quota has become so valuable

So is Trump right on tariffs ? Yes and no. That’ s partly politics -- dairy farmers are a powerful group -- and at least partly business. Trump ' s 270% Canadian Dairy Tariff , Fact or Fiction?

U.S. sugar producers wield political clout from years of being prolific campaign donors to both political parties. When the Bush administration negotiated a free trade agreement with Australia in 2004, sugar was the only U.S. industry to obtain a complete exemption from the pact's tariff reductions.

One irony: One of Trump's first acts as president was to withdraw from the Trans-Pacific Partnership. Under the TPP, former Canadian Prime Minister Stephen Harper had agreed to phase out its dairy supply management program over 10 years, says Christopher Sands of the Center for Canadian Studies at Johns Hopkins University.

When the United States pulled out, the 11 remaining TPP countries decided to go ahead with the pact. But they retracted some of the painful concessions they'd made at America's behest — including Canada's vow to dismantle barriers to dairy imports.

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AP Writer Rob Gillies in Toronto contributed to this report.

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Turkey hits United States with retaliatory tariffs .
Turkey just became the latest country to strike back at the United States for its tariffs on steel and aluminum. The country's Ministry of Economy said Thursday that it's imposing tariffs worth $267 million on US goods, targeting items such as coal, paper, walnuts, tobacco, rice, whiskey and cars. The move comes after negotiations with the United States failed to yield meaningful progress, according to the ministry. "Turkey is committed to active, robust and reciprocal trade relations with the US — but with the understanding that fairness cannot be one-sided," Economy Minister Nihat Zeybekci said in a statement.

Source: http://us.pressfrom.com/news/politics/-155202-ap-fact-check-trump-partly-right-on-canadas-dairy-tariffs/

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