Media reports suggest U.S. dairy access to Canada a topic of conversation in Ottawa

Current media reviews counsel that Canada could also be weighing whether or not to offer floor to the U.S. on dairy entry.

On Oct. 1, the Globe and Mail reported {that a} potential change to bilateral commerce regulation permitting for extra U.S.-sourced dairy on Canadian grocery cabinets was being floated in Ottawa, citing unnamed sources near the problem however who had been “not licensed to talk publicly on the matter.”

That contrasts with official phrase from the federal minister answerable for Canada-U.S. commerce. A spokesperson from the workplace of Dominic Leblanc reiterated commitments to guard Canadian business, stated that their workplace had engaged with provide managed industries and said that ““Canada’s provide administration system won’t ever be on the desk,” when requested for remark from the Globe and Mail.

WHY IT MATTERS: Supply management, and dairy specifically, has been a primary goal for U.S. irritation as commerce tensions between Canada and the U.S. proceed.

The article additional famous that Leblanc had launched consultations between authorities representatives and “key gamers” in Canada’s dairy business Sept. 19, upfront of 2026’s anticipated overview of the Canada-United States-Mexico Settlement (CUSMA).

Neither LeBlanc or business sources provided additional remark. The 2 unnamed sources stated talks to date had targeted on import restriction adjustments.

Entry to Canadian dairy markets and provide administration methods are forecast to be among the many CUSMA overview’s most heated exchanges, significantly in mild of U.S. President Donald Trump’s repeated condemnation of the apply.

Tariff rate quota, which earmarks sure dairy volumes to come back into Canada at decrease responsibility ranges, has been a selected sticking level, not solely from the Trump administration, but additionally through the Biden administration, in addition to creating pressure between Canada and New Zealand. Buying and selling companions have argued that TRQ rights tended to be unfairly reserved for Canadian processors, leaving little room for entry.

In 2021, Canada confronted a CUSMA grievance over the problem from the U.S., after which it made adjustments to how TRQs had been administered.

The U.S., nevertheless, has lengthy pushed for a extra open system. That much less regulated entry has been resisted strongly by the Canadian authorities and provide administration advocates, who argue that the present system has been key for offering constant market circumstances and has bolstered the well being of sectors like Canadian dairy and poultry.

The consultations additionally happen within the shadow of Bill C-202, the successor to Invoice C-282, which died on the ground when Canada’s federal election was referred to as in early 2025. The invoice limits Canada’s capability to make commerce concessions impacting provide managed industries. It was welcomed by provide administration advocates, however denounced by export-reliant agriculture sectors, who argued that it de-fanged Canada on the negotiating desk. Invoice C-202 acquired royal assent on June 26 of this 12 months.

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