The U.S. wants to reverse Canada’s dairy supply management system as part of the North American Free Trade Agreement renegotiation.
U.S. negotiators centered on the agriculture chapter of NAFTA over the weekend, and proposed to reverse Canadian dairy pricing program that has undercut certain U.S. dairy exports to Canada. The text, which demands that Canada eliminates an industry pricing classification that lowered domestic prices for certain milk protein products to the minimum global price, was met with swift pushback, according to Politico.
The proposal, called a “five-page attack” on Canada’s management system, also includes transparency requirements for Canada to report pricing decisions. A labor union representing dairy workers in Canada said the U.S. is “preparing a full assault on Canada’s supply management system.” The U.S. has long protested Canada’s system of tariffs and export limits designed to protect the domestic market, which is not part of the original NAFTA agreement.