Prime Minister Mark Carney has reiterated his commitment to safeguarding Canada’s supply management system amidst indications from the United States that it is prepared to address dairy regulations in negotiations. U.S. Trade Representative Jamieson Greer informed U.S. Congress members that specific and structural issues need to be resolved before extending the Canada-U.S.-Mexico agreement (CUSMA).
President Donald Trump’s trade representative expressed concerns about dairy market access in Canada and the country’s exports of certain dairy products. In response, Carney affirmed that supply management is non-negotiable and will be protected, emphasizing the government’s stance on the issue.
Supply management has been a longstanding policy in Canada, dating back to the 1970s, aimed at ensuring stable prices for farmers by guaranteeing them a minimum price for their products. Greer emphasized that expanded access to Canada’s dairy market is crucial for successful CUSMA discussions, citing alleged unfair restrictions on U.S. dairy product market access by Canada.
While some U.S. dairy products are allowed tariff-free entry into Canada under CUSMA, there have been calls from the U.S. dairy lobby to loosen regulations, particularly regarding how Canada allocates quotas for tariff-free dairy imports. The formal review of CUSMA is set to commence next year, providing an opportunity for the three countries to potentially extend the agreement beyond its expiration in 2036.
Apart from dairy concerns, Greer highlighted other trade grievances with Canada, including laws affecting online platforms and boycotts of U.S. alcohol in certain provinces. Carney emphasized that these issues are part of broader discussions, and any agreement must benefit Canadians.
The U.S. has also expressed frustrations with Mexico over supply chains, energy policies, and labor laws. Carney revealed that negotiations with the U.S. were nearing an agreement before talks were halted following an ad run by Ontario Premier Doug Ford’s government featuring former U.S. president Ronald Reagan opposing tariffs.