Canada Stands Firm on Dairy System Despite US Pressure
Trade Minister Mary Ng rejected any changes to Canada’s dairy supply management system Wednesday, despite mounting US pressure and tariff threats.
“Correct,” Ng told CTV‘s Power Play when asked if Canada would maintain its current dairy policies. She pointed to a 2023 trade panel that ruled in Canada’s favor after American farmers challenged how the government allocates its tariff-free dairy import permits.
Trump’s commerce secretary nominee Howard Lutnick attacked Canadian dairy policies at his confirmation hearing, claiming that “Canada treats our dairy farmers horribly. That’s got to end.”
The dispute centers on US access to Canadian dairy markets. Under CUSMA, signed in 2018, Canada agreed to allow American farmers access to about 3.5% of its domestic market. The system coordinates production and maintains import controls for dairy, poultry, and eggs to stabilize prices for both farmers and consumers.
Trump criticized Canadian trade practices earlier this week. “We don’t need them for agricultural products because we have all the agriculture we need,” Trump said. “They don’t take our agricultural product, for the most part, our milk and dairy. A little bit they do, but not much. We take theirs.”
Canada secured a 30-day pause on threatened US tariffs by committing $1.3 billion to border security, including enhanced surveillance and anti-drug measures. The Wall Street Journal previously reported Trump may use tariff threats to push for early renegotiation of CUSMA, due for review next year.
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