Canada Ready to Make Concession on Dairy Trade

Canada is ready to make concessions their protected dairy market in a bid to save a key NAFTA dispute-settlement system, preserve safeguards for cultural industries and avert tougher pharmaceutical patent protections. The Globe and Mail reports Canada’s dairy, egg and poultry sectors operate under supply management that protects Canadian producers from foreign competition by charging tariffs up to 275 percent on imports.

Prime Minister Justin Trudeau said this week Canada will “defend supply management.” However, sources close the negotiation say Canada’s plan is not to dismantle the supply management system entirely, but that negotiators will agree to change one rule that blocks U.S. farmers from exporting ultrafiltered milk to Canada, and also offer the United States a percentage of the Canadian dairy market.