U.S. Complaints About Canadian Dairy Policy Unfounded

An Independent Agri-Food Policy Note released by Agri-Food Economic Systems suggests U.S. complaints about Canadian dairy policy are unfounded. As North America closes in on the time frame for renegotiating the Canada-United States-Mexico Agreement the U.S. and has launched a U.S. International Trade Commission investigation into Canada's exports of skim milk.

Agri-Food Economic Systems has released an Independent Agri-Food Policy Note  which explores U.S. and Canadian skim milk product exports.Research lead Dr. Al Mussell says, while Canadian dairy policy has long been an irritant, Canada has remained in full compliance with its international trade obligations, including the Canada-United States-Mexico Agreement.

Quote-Dr. Al Mussell-Agri-Food Economic Systems:

The narrative that the United States gives us is that Canadian dairy policy is just a series of transgressions and here we go again.It's the Canadians trying to get away with this or that to try and protect their dairy industry.Broadly speaking I don't think that's the case but the bigger point here is you need to take a look at them.

A lot of the same things they object to Canada doing, they themselves do.It's not like it's a free-market country expressing concerns about a protectionist country.Their dairy policy is highly protectionist and regulated.You have to worry in the trade environment that we're in, our counterparts in the U.S. seem to be quite prepared to trade things off.

They could turn around and look at trading off a concession on softwood lumber let's say for pork or milk for automotive, who knows.We need a relationship with our allies in the United States that works for everybody.We can't be doing this sort of trading off so it's very important that we get a satisfactory resolution to it.

Dr. Mussell says, whether or not you're involved in supply management, this is an important matter.He suggests Canada needs to be prepared to push back on this or risk being pushed around.