The U.S. dairy industry is urging dairy state governors to take action against Canada to halt a new dairy pricing policy that could hinder the trading of dairy products between the U.S. and Canada. South Dakota Dairy Producers Association President Marv Post says it’s a difficult problem to solve because Canada’s dairy industry uses an ingredient class milk pricing structure to reduce similar milk product imports from the U.S.

He says the Canadians are violating WTO and NAFTA rules with their dairy pricing program, which displaces U.S. exports to Canada. However, Post says the problem will be addressed with the renegotiation of NAFTA.

Post says he understands Canada’s position on the policy and it won’t be an easy problem to fix. He says both sides will have to compromise on the issue for it to be resolved.

Canada’s dairy pricing program allows their domestic processors to purchase dairy products at the lowest market price in the U.S., and the European Union for the next seven years.