Prime Minister Mark Carney has reiterated his commitment to safeguarding Canada’s supply management system amidst escalating tensions with the United States over the country’s dairy regulations. U.S. Trade Representative Jamieson Greer informed U.S. Congress members that Washington is adamant about addressing specific structural issues before extending the Canada-U.S.-Mexico Agreement (CUSMA).
In response to concerns raised by Greer regarding “dairy market access in Canada” and “Canada’s dairy exports,” Carney made it clear that supply management is non-negotiable. He emphasized that Canada will continue to uphold and defend its supply management policies.
The ongoing dispute revolves around ensuring stable prices for farmers through the supply management system established in the 1970s. Greer highlighted the need for expanded access to Canada’s dairy market for the success of CUSMA negotiations, citing perceived unfair restrictions on U.S. dairy product market access in Canada.
While some U.S. dairy products are allowed to enter Canada tariff-free under existing import quotas negotiated in CUSMA, the U.S. dairy lobby has been advocating for further relaxation of these rules. Key concerns include how Canada allocates quotas for tariff-free dairy imports and the international dumping of milk protein by Canadian producers.
The formal review of CUSMA is set to commence next year, offering an opportunity for the three countries involved to consider extending the agreement beyond its current 2036 expiration date. Apart from dairy issues, Greer highlighted additional trade grievances related to Canadian laws affecting online platforms and ongoing boycotts of U.S. alcohol in certain provinces.
Carney emphasized that the flagged concerns are part of broader discussions and reiterated the government’s commitment to signing agreements that benefit Canadians. The Prime Minister also disclosed that negotiations with the U.S. were progressing before an anti-tariff ad aired, leading to a temporary halt in talks between the two countries.
In addition to trade challenges with Canada, the United States has expressed frustrations with Mexico regarding supply chains, energy policies, and labor laws. Carney’s remarks on U.S. trade negotiations were made in conjunction with Ontario Premier Doug Ford, acknowledging that both sides were nearing an agreement before the ad controversy emerged.