Canada's Dairy Dilemma: Supply Management & Trade

Canadian dairy is a recent target of U.S. President Donald Trump’s proposed reciprocal tariffs coming in April. Trump’s proposed levies are in retaliation for the sector’s massive tariffs, which apply to American imports over a certain limit. According to the International Dairy Food Association, the import limits have never been exceeded.

It’s part of a system called supply management. It controls the country’s domestic dairy production, and has strict regulations surrounding imports and exports. But some critics say it acts as a trade barrier. At a time when Canada needs to expand its relationships, can it afford to leave this system untouched?

Today, the Globe’s economics reporter Nojoud Al Mallees is on the show to explain how Canada’s supply management system works, what it means for farmers and consumers, and why it’s become a target in Trump’s trade war.

Questions? Comments? Ideas? E-mail us at thedecibel@globeandmail.com