U.S. dairy producers emphasize that they are not seeking the dismantling of Canada’s supply management system. Instead, they are calling for Canada to adhere to the current agreement governing dairy trade between the two nations. President Donald Trump has criticized Canada for what he perceives as unfair practices with significant dairy tariffs, although this view has been challenged.
Industry leaders in the U.S. dairy sector express concerns about misrepresentation in Canada, leading to a misunderstanding of their actual goals regarding market access. Shawna Morris, representing the National Milk Producers Federation and the U.S. Dairy Export Council, clarifies that their intention is not to eliminate Canada’s supply management system.
According to Becky Rasdall Vargas from the International Dairy Foods Association, there is a feeling of being neglected by Canada concerning legitimate trade issues, despite the Trump administration’s strong rhetoric towards the country.
The primary concerns of the U.S. dairy industry with Canada revolve around the allocation of quotas for tariff-free dairy imports and the practice of Canadian milk producers exporting low-cost milk protein internationally. The import quotas established under the Canada-U.S.-Mexico Agreement aim to provide U.S. producers with a small percentage of Canada’s dairy market demand without seeking domination.
While the U.S. industry is not pushing for adjustments in quota volumes or tariff rates, they advocate for changes in how Canada allocates quotas to enhance fair competition. They propose granting retailers and the food-service sector a portion of tariff-free quotas and enforcing penalties for importers failing to utilize their full quota.
The U.S. also raises concerns about Canada’s export of milk proteins at artificially low prices due to high domestic prices, creating unfair competition. This issue is under investigation by the U.S. International Trade Commission at the request of the Trump administration.
Despite past legal disputes over dairy trade, including actions taken by the Biden administration, there is a call for Canada to address the genuine concerns expressed by the U.S. dairy industry. The industry seeks a more responsive approach from Canada in resolving trade issues to foster a mutually beneficial relationship.