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Prime Minister Mark Carney has confirmed he will defend Canada's supply management system, while the United States has signaled it is willing to fight for that country's dairy rules at the negotiating table.
US Trade Representative Jamison Greer told members of Congress on Wednesday that Washington is not prepared to extend the Canada-United States-Mexico Agreement (CUSMA) without addressing “specific and structural issues.”
In comments released after Greer met with lawmakers behind closed doors, President Donald Trump's trade spokesman said Americans were concerned about “access to the Canadian dairy market” and “Canadian exports of certain dairy products.”
Responding Thursday morning, Carney said supply management issues were “not on the table.”
“We have clearly outlined our approach to supply management. We continue to stick to this. We will continue to defend supply management,” the Prime Minister said.
Prime Minister Mark Carney, who attended an event Thursday with Premier Doug Ford outlining steps to agree on approaches to major projects, fielded questions about their reaction to recent demands made by the U.S. Trade Representative regarding access to Canada's dairy market and how provinces are handling the sale of American alcohol.
It's a position he's made clear in the past, including during the campaign this spring.
Carney was asked a question about supply management in English and answered in French – a transparent message to Quebec, where the system is fiercely defended by the dairy industry.
The policy, which dates back to the 1970s, aims to ensure predictable and stable prices by guaranteeing regulated farmers a minimum price for their produce.
Greer called expanding dairy market access a critical step for the success of the CUSMA negotiations, arguing that Canada “supports policies that unfairly restrict market access for American dairy products.”
Canada allows duty-free trade of some U.S. dairy products in Canada.
The import quotas negotiated under CUSMA during Trump's first term are intended to give U.S. producers duty-free access to about 3.5 per cent of Canada's domestic demand for dairy products.
US Dairy Lobby is pushing for a relaxation of those rules and points to two major irritants: the way the Canadian government allocates existing quotas for duty-free imports of dairy products, and the way Canadian producers dump milk protein into the international market.
A formal review of CUSMA will begin next year, when the three countries can decide whether to extend the agreement beyond its expiration in 2036.
Carney says he was close to a deal
Besides the dairy market, Greer cited two other trade grievances with Canada: its laws affecting online platforms such as Netflix, Spotify and YouTube, as well as ongoing alcohol boycotts in some US provinces.
Carney said Thursday that the issues Greer flagged are part of a much larger discussion.
He said the government would “only sign an agreement” that benefits Canadians.
During an appearance with Ontario Premier Doug Ford, a reporter asks Premier Mark Carney if he believes Ontario's anti-tariff advertising influenced US tariffs on Canada. In response to the same question, Ford said that “it was the best ad ever aired.”
The United States also released a list of grievances with Mexico related to supply chains, energy policy and labor laws.
On Thursday, Carney was asked about trade negotiations with the United States as he stood next to Ontario Premier Doug Ford. In late October, Trump abruptly ended negotiations, citing an ad released by the Ford government featuring Former US President Ronald Reagan opposes tariffs.
Carney said both sides “sh“We’re close to an agreement” before the ad even aired.
