Prime Minister Mark Carney has reiterated his commitment to safeguard Canada’s supply management system as the United States indicated its readiness to address issues surrounding Canada’s dairy regulations during negotiations. U.S. Trade Representative Jamieson Greer informed U.S. Congress members that specific structural concerns need to be resolved 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 emphasized that Canada’s supply management system is non-negotiable. He stated firmly, “We’ve been clear about our approach to supply management. We continue to stand by that. We will continue to protect supply management.”
This stance by Carney, reiterated during the recent event alongside Premier Doug Ford, reflects his consistent position on the issue, including during the election campaign earlier this year. The supply management system, established in the 1970s, aims to maintain stable prices by ensuring farmers receive a minimum price for their products.
Greer highlighted expanded access to the Canadian dairy market as a key requirement for successful CUSMA discussions, citing concerns that Canada’s policies unfairly restrict market access for U.S. dairy products. While Canada permits some tariff-free imports of U.S. dairy goods, negotiations under CUSMA have allocated approximately 3.5% of Canada’s dairy product demand for tariff-free access by U.S. producers.
The U.S. dairy lobby has been advocating for relaxed rules on dairy imports and has pointed out issues related to Canada’s allocation of import quotas and the international dumping of milk protein by Canadian producers. The formal review of CUSMA is set to commence next year, offering the three countries the opportunity to extend the agreement beyond its expiration in 2036.
Apart from dairy concerns, Greer identified other trade grievances with Canada, including laws affecting online platforms and ongoing boycotts of U.S. alcohol in certain provinces. Carney emphasized that these issues are part of a broader discussion and reiterated the government’s commitment to signing agreements that benefit Canadians.
Furthermore, Carney mentioned that discussions with the U.S. were progressing positively until the Ontario government’s anti-tariff ad aired, causing talks to be temporarily halted. The U.S. has expressed frustrations with Mexico on various issues, including supply chains, energy policies, and labor laws, indicating broader challenges in North American trade dynamics.