Prime Minister Mark Carney has reiterated his commitment to safeguarding Canada’s supply management system, while the United States has indicated its readiness to address Canada’s dairy regulations in trade negotiations.
U.S. Trade Representative Jamieson Greer informed U.S. Congress members that Washington is unwilling to extend the Canada-U.S.-Mexico Agreement (CUSMA) without addressing specific structural issues. 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 emphasized that supply management is non-negotiable and will be protected. He reaffirmed the government’s stance on the issue during a public statement.
The dispute revolves around Canada’s supply management policy, which was established in the 1970s to ensure 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 negotiations, citing alleged restrictions on U.S. dairy products.
While some U.S. dairy products are allowed to enter Canada tariff-free under CUSMA, the U.S. dairy lobby has called for further loosening of rules regarding dairy imports. The formal review of the CUSMA agreement is set to begin next year, allowing the three countries to decide on its extension beyond 2036.
Apart from dairy issues, Greer also raised concerns about Canadian laws affecting online platforms and ongoing alcohol boycotts in certain provinces. Carney stated that these issues are part of a broader discussion and emphasized the government’s commitment to signing agreements that benefit Canadians.
Carney revealed that negotiations with the U.S. were close to a resolution before a disagreement arose following an anti-tariff ad run by Ontario Premier Doug Ford’s government. The U.S. has also expressed frustrations with Mexico regarding supply chains, energy policies, and labor laws.