Canada accused of export milk dumping

New Zealand, Australian and United States dairy companies are accusing Canada of dumping low-priced milk products on world markets and are asking their governments to intervene.

Dumping is a technical trade term that basically means exporting at prices below the cost of production.

Industry groups from the three nations have written to their trade and agriculture ministers and officials expressing concern over the impact of “Canada’s trade delinquency” on dairy protein markets, the Dairy Companies Association of New Zealand said Thursday. 

“Of concern is the purposeful design of Canada’s milk pricing mechanisms to under-price the surplus milk protein generated by its domestic supply management system and incentivize disposal onto world markets,” the New Zealand association said in a statement. 

“Collective and coordinated action is requested to address the mechanisms being used by Canada to enable these exports to be dumped on world markets.”

It seems to me they have a strong case.

The United States, New Zealand and the European Union also accuse Canada of protecting milk supply management through its administration of quotas for lower-tariff imports granted in international trade agreements.