Overview

• Bill C-202, enacted in late June, bars any tariff or quota concessions on dairy, poultry and eggs, leaving the two sides deadlocked in the final round of trade negotiations.
• U.S. dairy leaders say they do not seek to dismantle supply management but demand that Canada strictly apply CUSMA rules on who receives tariff-free import quotas, including retailers and food-service firms.
• Canada’s excess milk proteins are being sold abroad at low prices under its supply management model, prompting a U.S. International Trade Commission probe set to begin next week.
• President Donald Trump has warned of imposing 35% tariffs on Canadian dairy imports if Ottawa does not address concerns over quota allocation and protein dumping.
• While studies show supply management raises grocery bills by up to $600 per household each year, domestic farm lobbies and supportive media maintain strong political backing for the system.