Prime Minister Mark Carney has reaffirmed his commitment to safeguarding Canada’s supply management system amidst indications from the United States of potential disputes over Canada’s dairy regulations during negotiations. U.S. Trade Representative Jamieson Greer emphasized to U.S. Congress members the necessity of addressing specific issues before extending the Canada-U.S.-Mexico agreement (CUSMA).
Greer expressed concerns about “dairy market access in Canada” and the country’s exports of specific dairy products. In response, Carney asserted that supply management remains non-negotiable, emphasizing the government’s steadfast stance on protecting this system.
The prime minister’s unwavering position on supply management has been consistent, including during the recent election campaign. Carney’s response in French to a question regarding supply management highlighted the significance of this issue in Quebec, where the dairy industry strongly supports the system dating back to the 1970s to ensure stable prices for farmers.
While Greer emphasized the importance of expanded access to Canada’s dairy market for successful CUSMA negotiations, Canada currently permits certain U.S. dairy products to enter tariff-free under negotiated import quotas. The U.S. dairy lobby has advocated for revisions to these rules, particularly addressing concerns about the allocation of import quotas and Canadian milk protein exports.
Outside of dairy issues, Greer raised additional trade grievances related to Canadian laws affecting online platforms and boycotts of U.S. alcohol in some provinces. Carney emphasized the need for a comprehensive agreement that benefits Canadians, noting that unresolved issues are part of broader discussions.
The U.S. has also expressed concerns with Mexico on various supply chain, energy policy, and labor law matters. Carney, alongside Ontario Premier Doug Ford, mentioned being close to an agreement with the U.S. before talks were halted following a tariff-related ad featuring former President Ronald Reagan.