Prime Minister Mark Carney restated his commitment to safeguard Canada’s supply management system amid indications from the United States of potential disputes over Canada’s dairy regulations during trade negotiations. U.S. Trade Representative Jamieson Greer emphasized the necessity to address specific structural issues before extending the Canada-U.S.-Mexico agreement (CUSMA). President Donald Trump’s trade representative expressed concerns over Canada’s dairy market access and specific dairy product exports.
In response, Carney firmly stated that supply management would not be up for negotiation, emphasizing Canada’s continued support and protection of the system. This stance has been consistently maintained, including during the recent election campaign. Carney, addressing a question regarding supply management in French, aimed to convey a clear message to Quebec, where the dairy industry strongly advocates for the system safeguarded since the 1970s to ensure stable prices for farmers.
Greer highlighted expanded dairy market access as pivotal for successful CUSMA negotiations, citing alleged unfair restrictions on U.S. dairy products in Canada. While Canada permits some tariff-free imports of U.S. dairy, disputes revolve around allocation quotas and surplus milk protein dumping into the global market. The formal review of CUSMA is slated for the upcoming year, allowing the three nations to potentially extend the agreement beyond its expiration in 2036.
Apart from dairy concerns, Greer raised issues regarding Canadian laws affecting online platforms and ongoing boycotts of U.S. alcohol in some provinces. Carney stressed the need for a comprehensive agreement beneficial to Canadians, acknowledging the broader scope of discussions. He mentioned that negotiations with the U.S. were progressing before a dispute emerged over an anti-tariff advertisement featuring former President Ronald Reagan, causing talks to be halted momentarily in late October.