Supply management ‘not on the table,’ Carney says US intent on changing dairy rules
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Prime Minister Mark Carney reaffirmed he will defend Canada’s supply management system, as the United States signaled it is prepared to fight over the country’s dairy rules at the negotiating table.
US Trade Representative Jamieson Greer told members of the US Congress on Wednesday that Washington is not ready to extend the Canada-US-Mexico Agreement (CUSMA) without addressing “specific and structural issues”.
In comments made public after Greer met behind closed doors with lawmakers, President Donald Trump’s point-person on trade said Americans have concerns about “dairy market access in Canada” and “exports of certain Canadian dairy products.”
Responding Thursday morning, Carney said supply management is “not on the table.”
The Prime Minister said, “We have been clear about our approach towards supply management. We stand by that. We will continue to protect supply management.”
Premier Mark Carney, appearing with Premier Doug Ford at an event Thursday outlining steps to align approaches around major projects, raised questions about his response to demands recently laid out by the U.S. Trade Representative regarding access to the Canadian dairy market and how the province is handling U.S. wine sales.
It’s a position he has made clear in the past, including on the election campaign this spring.
Carney was asked a question on supply management in English, and he responded in French – a transparent message to Quebec where the system is completely protected by the dairy industry.
The policy, which dates back to the 1970s, aims to ensure predictable and stable prices to supply-managed farmers by guaranteeing a minimum price for their products.
Greer added expanded access to the dairy market as a critical step for CUSMA negotiations to be successful, arguing that Canada “maintains policies that unfairly restrict market access for U.S. dairy products.”
Canada allows some US dairy products to be traded tariff-free into Canada.
Import quotas negotiated under CUSMA during Trump’s first term have been designed to provide U.S. producers with tariff-free access to the value of approximately 3.5 percent of Canada’s domestic demand for dairy products.
American dairy lobby There is a push to loosen those rules and has identified two main troubles: how the Canadian government allocates existing quotas for tariff-free imports of dairy products, and how Canadian producers dump milk proteins onto the international market.
A formal review of CUSMA will begin next year, when the three countries could decide to extend the agreement beyond its 2036 expiration date.
Carney says he was close to a deal
Outside the dairy market, Greer noted two other trade complaints with Canada: its laws affecting Online platforms such as Netflix, Spotify and YouTube, and ongoing boycotts in some states of American liquor.
Carney said Thursday that the issues raised by Greer are elements of a much larger discussion.
He said the government “will only sign an agreement” that will work for Canadians.
During an announcement with Ontario Premier Doug Ford, a reporter asked Prime Minister Mark Carney if he thought Ontario’s anti-tariff advertising influenced US tariffs on Canada. Answering the same question, Ford said, ‘That was the best advertisement ever run.’
The United States also released a list of frustrations with Mexico related to supply chains, energy policies and labor laws.
Carney was asked about U.S. trade talks Thursday while standing next to Ontario Premier Doug Ford. Trump abruptly canceled talks in late October, citing an ad run by the Ford government Former US President Ronald Reagan speaking out against the tariffs.
Carney said both sides “W“were close to an agreement” before the ad aired.
