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U.S. Dairy Producers Demand Fairer Trade Quotas with Canada

7/28/2025

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Summary

Story summary

U.S. dairy producers are pushing for a fairer distribution of tariff-free quotas under CUSMA, arguing that Canada’s current system favors large processors and restricts American access. They also take issue with Canada’s pricing of milk proteins, which they claim undermines international markets. As negotiations unfold, trade tensions remain high.

History

Historical Context

The North American Free Trade Agreement (NAFTA), enacted in 1994, aimed to reduce trade barriers among the U.S., Canada, and Mexico. Under NAFTA, U.S. dairy exports faced strict limits, accessing only 1% of the Canadian market. The subsequent United States-Mexico-Canada Agreement (USMCA) in 2018 expanded U.S. dairy access to 3.6%, reflecting ongoing tensions over trade imbalances and market access.

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Story summary

U.S. dairy producers are pushing for a fairer distribution of tariff-free quotas under CUSMA, arguing that Canada’s current system favors large processors and restricts American access. They also take issue with Canada’s pricing of milk proteins, which they claim undermines international markets. As negotiations unfold, trade tensions remain high.

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