Canada’s trade hurdle is all about supply management
As North American Free Trade Agreement (NAFTA) talks continue, much remains undecided.
The United States and Mexico have already reached an agreement in principle on a new free-trade arrangement. But in light of Trump’s complaints about Canadian dairy tariffs, the highest hurdle for Canada will be our supply management programs.
The U.S.-Mexico deal, while still light on details, means Canada faces a serious threat of trade and investment diversion over time if Mexican producers have tariff-free access to the U.S. while Canadian producers don’t.
That means NAFTA – or, if U.S. President Donald Trump gets his way, “USMC” talks, for a U.S., Mexico and Canada pact – is in jeopardy.