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Dairy has long been one of the sticking points in Canada-U.S. trade, especially for Ryan’s native Wisconsin. Canada’s system of tariffs and quotas, known as supply management, restricts much of its market. The U.S. is proposing in NAFTA talks to blow up that system, but the Canadians argue the U.S. still has a leg up.

In a letter last year sent to the governors of New York and Wisconsin, the Canadian ambassador to Washington, David MacNaughton, cited data showing dairy trade between the countries benefits the U.S. by a five-to-one margin. Agriculture, including dairy, has been one of the main focuses of several rounds of NAFTA negotiations.

Treasury Secretary Steve Mnuchin said Trump was updated Thursday on the status of NAFTA talks, and he’s “very pleased on where things are going.” Mnuchin said, “we are expecting that will be re-negotiated or we will pull out.”

Trump also this week repeated his claims that the U.S. “has been treated very, very badly” under NAFTA, citing trade deficits with Canada and Mexico. He said he’s willing to be “flexible” but wants a fair deal, which he described as a “Trump deal.”

“If we don’t make the right deal, I will terminate NAFTA. OK?” Trump said in an interview with the Wall Street Journal. “Now, do I want to? No, I’d rather leave it.”

Bloomberg.com