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Canada “Flatly Rejects” U.S. Dairy Proposal

Wrapping up the fourth round of talks on the North American Free Trade Agreement, the U.S. proposed a dismantling of Canada’s dairy supply management system. Bloomberg reports Canada “flatly rejects” the proposal by the United States.

The proposal would effectively kill Canada’s supply management system by fully eliminating tariffs on supply-managed products over ten years. President Donald Trump earlier this year called the system “unfair,” and used the system as part of his threat to withdraw from NAFTA. Canada’s government dismissed the U.S. dairy proposal, while the Dairy Farmers of Canada called it “outrageous.”

The U.S. proposal, according to Canada officials, would effectively end supply management. Canada’s Agriculture Minister said to “deal with anything else is simply a non-starter.” Former U.S. Trade Representative Michael Froman urged that the U.S. proposals be considered opening offers, saying “it’s a negotiation.”

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