June 27, 2017

Justin Trudeau, Trump discuss trade dispute between Canada, U.S.

08 May 2017, 12:31 | Chelsea Rogers

There are days when the Americans make it difficult to have good relations with them – Brian Mulroney

There are days when the Americans make it difficult to have good relations with them – Brian Mulroney

The interview follows a decision to impose tariffs on farm products from Canada on softwood lumber and President Donald Trump issuing a tweet suggesting dairy products may be next.

In an open letter to Prime Minister Justin Trudeau, premier Christy Clark cited the "unfair and unwarranted" lumber duties.

It has drawn criticism from industry groups from dairy-producing countries including Australia, New Zealand and Mexico, as well as the European Union, who say new prices for Canadian milk ingredients under-cut exports to Canada.

TORONTO (AP) - Prime Minister Justin Trudeau warned Tuesday that Canada and the USA could suffer a "thickening" border as the Trump administration imposes new tariffs on softwood lumber and trade tensions between the two countries escalate. USA dairy farmers say the new accord has cost Wisconsin and NY companies millions of dollars. "It was a very amicable call".

Wall says the USA decision to impose tariffs of up to 24 per cent on Canadian lumber was not a surprise.

In Washington, the US Commerce Secretary Wilbur Ross while praising Canada as its "closest ally and all weather friend" did not fall short of accusing it for engaging in unfair trade practices.

Wall says Canada is not there yet on softwood lumber and it's important to have a rationale approach in negotiations.

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"You can not thicken this border without hurting people on both sides of it", Trudeau said.

The moves come as the relationship between the two North American nations is the focus of the Great Lakes Economic Forum, being held jointly in Detroit and Windsor.

Trudeau told his American counterpart that "Canada will vigorously defend the interests of the Canadian softwood lumber industry", according to a release from his office.

Trudeau believes soft lumber tariffs could harm both countries.


"People don't realize, Canada has been very rough on the United States".

Lumber and dairy are long-standing irritants - and were also a problem file under previous presidents.

Historically, lumber and dairy have always been points of contention between the countries, leading to tariffs, trade litigation, and settlements. Lumber prices had been low since the last trade deal expired in 2015 and a moratorium allowed Canada to export softwood lumber duty free into the U.S.

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