Canada isn’t willing to concede on supply management when it comes to trade with the United States.
International Trade and Economic Development Minister Mary Ng made that clear during an interview on Power Play with Vassy Kapelos.
“For people, for example, who have a stake in the dairy industry, farmers, for example, in Quebec, your message to them (on Feb. 5) is you’re not going to concede on supply management,” Kapelos said.
“Correct,” the minister replied.
Members of the new U.S. administration have targeted dairy trade between the two countries during confirmation hearings.
Commerce Secretary nominee Howard Lutnick, for example, told a senate committee that Canada “treats our dairy farmers horribly. That’s got to end. It’s got to end. If Canada is going to rely on America for its economic growth, how about you treat our farmers or ranchers and our fishermen with respect.”
During CUSMA negotiations, completed in 2018 under Trump’s first presidency, Canada conceded about 3.5 per cent of its dairy market.
And despite challenges from the U.S., Canada is doing its part in relation to CUSMA, Minister Ng said.
“With respect to supply management, I would also say that the Americans absolutely have taken advantage of the dispute settlement system that is a part of our trade agreement,” she told Kapelos. “And I would like to remind your viewers that the dispute settlement panel in that particular instance actually ruled in Canada’s favour, which is that we are living up to our obligations in the trade agreement, particularly around dairy.”
The U.S. and Canada have appeared in front of a CUSMA dispute settlement over dairy twice.
In 2022, the panel ruled with the United States that Canada was “reserving most of the in-quota quantity in its dairy TRQs for the exclusive use of Canadian processors,” the United States Trade Representative’s office says.
In 2023, the panel sided with Canada after the U.S. alleged Canada’s TRQs are inconsistent in four areas.