Hub Podcasts How the U.S.'s new attack of dairy supply management affects Canada-U.S. trade renegotiations
Aug 7, 2025
David Clement, North American Affairs Manager with the Consumer Choice Center, dives into the controversy surrounding Canada’s dairy supply management and its scrutiny by the U.S. Trade Commission. He argues that this outdated system distorts trade and challenges low-income consumers. Clement discusses how U.S. investigations could reshape access to Canadian markets and the dynamics at play in trade negotiations. He highlights the potential benefits of reform, including lower prices and more choices for consumers, alongside concerns for farmers.
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U.S. Challenges Canada's Dairy Exports
- The U.S. Trade Commission sees Canada's dairy supply management as unfairly balancing domestic demand and exports.
- This challenges Canada to not protect domestic supply while flooding U.S. markets with dairy proteins at low prices.
Politics Drive U.S. Dairy Probe
- The U.S. investigation into Canadian dairy is tied to USMCA trade renegotiations and U.S. domestic politics.
- Wisconsin dairy farmers' access to the Canadian market is a pivotal political issue influencing the investigation.
Supply Management's Trade Paradox
- Canada’s supply management in dairy is a unique trade irritant since it uses quotas and tariffs unlike other agricultural sectors.
- This system raises consumer prices while restricting free trade, fueling legitimate international grievances.