The Decibel Why Trump is targeting Canada’s dairy protection regime
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Mar 18, 2025 Nojoud Al Mallees, an economics reporter with The Globe and Mail, breaks down Canada’s supply management system and its entanglement in Trump’s trade war. She reveals how strict regulations shape dairy production and imports, making it a target for U.S. tariffs. The discussion dives into the impact on Canadian farmers and consumers, exploring the delicate balance between protecting local industries and the pressures of international trade. Al Mallees also raises the question of whether Canada can afford to maintain this system amid escalating trade tensions.
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Supply Management System
- Supply management in Canada controls production and pricing for dairy, eggs, and poultry.
- Provincial marketing boards set quotas, and the federal government imposes tariffs on imports exceeding a certain limit.
Rationale for Supply Management
- The system aims to stabilize prices and ensure domestic supply of essential foods.
- It arose from market volatility in the 1960s and concerns about American market dominance.
Market Volatility and US Competition
- Volatility in agriculture stems from seasonality and market competition.
- Canada's supply management aimed to protect domestic producers from the larger American dairy industry.