Can Canada uphold dairy supply management while giving U.S. more access?
The U.S. has long complained that Canada severely limits access to its dairy market through supply management, even threatening new tariffs over it. Here's what they want changed.
Canada's dairy industry faces a dilemma as trade talks between the two nations appear to offer more access to the U.S. market. U.S. President Donald Trump claimed Canada agreed to eliminate tariffs on American dairy farmers, but Prime Minister Dominic LeBlanc stated the supply management system would remain intact. Critics argue the system hinders American dairy access.
The U.S. dairy industry contends the real issue is how supply management blocks American products under CUSMA. Data shows U.S. dairy exports to Canada have increased since CUSMA, but some estimate Canadian processors could lose $140 million annually with more market access. Concerns arise that domestic production quotas could be compromised.
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