Dairy supply management may complicate trade negotiations between Canada & U.s

Dairy supply management may complicate trade negotiations between Canada and the US.
Canada-U.S. trade talks, particularly focusing on Canada's supply management system for dairy, eggs, and poultry.


This system, which limits imports through high tariffs and controls production, has been a point of contention in past trade negotiations. While Canada has removed a digital service tax to keep talks going, the more contentious issue of supply management remains. U.S. President Donald Trump has previously criticized Canadian tariffs on dairy products, and the system was a sticking point during the negotiations for the U.S.-Mexico-Canada Agreement (USMCA). Despite recent legislation in Canada aiming to protect supply management during trade talks, some analysts suggest that the government may still be willing to discuss it if necessary to reach an agreement. The Canadian dairy industry is influential in the country's politics, especially in key provinces like Quebec and Ontario, making any changes to the system politically challenging. Dairy Farmers of Canada have responded to Trump's comments by stating that the U.S. actually exports more dairy products to Canada than it imports. The article highlights the complexity and potential for conflict in ongoing trade negotiations between the two countries.