Hub Podcasts Will the U.S. force Canada to revisit supply management?
Jul 18, 2025
The discussion dives into the intricacies of Canada's supply management system, focusing on dairy and poultry. It examines historical trade negotiations that have shaped current policies. The potential impact of U.S. tariff threats brings urgency to the topic, highlighting Canada's struggle to balance domestic needs with international demands. The conversation promises insightful perspectives on how these dynamics could force Canada to reevaluate its agricultural strategies.
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How Supply Management Works
- Canada's supply management system controls dairy and poultry production to manage prices.
- This system relies heavily on restricting foreign competition through high tariffs to protect domestic markets.
Rising Foreign Dairy Imports
- Canada has allowed growing foreign dairy imports under tariff rate quotas in recent trade agreements.
- Canadians now consume more foreign dairy despite supply management policies.
U.S. Dairy Market Protection
- The U.S. heavily subsidizes its dairy farmers and uses tariffs to protect them from competition.
- Neither Canada nor the U.S. markets utilize fully free-market practices for dairy.