The renegotiated U.S.-Mexico-Canada Agreement (USMCA) requires Canada to enhance market access for U.S. dairy products. This requirement emerges from ongoing discussions about improving trade relations under the agreement.
During a meeting with U.S. Congress members, U.S. Trade Representative Jamieson Greer expressed that dairy market access issues are critical points needing attention in the upcoming six-year review of the USMCA. He described the list of issues as "non-exhaustive," hinting that there are multiple areas where improvements could be made to enhance trade efficiency and fairness among the three nations.
Greer noted that while various stakeholders have expressed support for extending the agreement, there is a strong consensus that improvements are necessary. Notably, he emphasized that a significant number of stakeholders are advocating for modifications related to Canada's dairy policies before any renewal of the agreement occurs. One specific group indicated that the agreement should not be renewed without resolving the current concerns surrounding Canada's dairy market practices.
In addition to dairy access issues, Greer mentioned Canada’s Online Streaming Act, which discriminates against U.S. technology and media firms. This law, alongside other measures limiting digital services trade, continues to be a sticking point in U.S.-Canada relations. Concerns have also been raised regarding Canada's policies that restrict market access for U.S. dairy products, which, according to Greer, are viewed as unfairly disadvantaging U.S. interests.
Earlier this year, former U.S. President Donald Trump made assertions about Canada imposing tariffs up to 300% on U.S. dairy products. However, this claim has been refuted as misleading. The tariffs in question are structured in a way that limits their application to situations where U.S. exports exceed certain quotas—a threshold that has never been reached.
Beyond dairy and digital services, Greer pointed to additional topics of concern in the trade discussions. These include provincial bans on U.S. alcohol distribution, discriminatory procurement practices in Canadian provinces such as Ontario, Quebec, and British Columbia, and complicated customs registration processes for Canadian entities receiving U.S. exports. Furthermore, he highlighted issues related to Alberta's treatment of electrical power distribution providers from Montana, which some stakeholders view as unfair.
Another important focus of the negotiations is to strengthen the rules of origin for non-automotive industrial goods. This measure aims to ensure that the trade benefits associated with these products primarily flow back into the economies of all three participating countries—Canada, the United States, and Mexico.
Overall, these elements reflect the complexities and multifaceted nature of the ongoing trade discussions under the USMCA. Stakeholders from various sectors are closely monitoring these developments, emphasizing that any agreement must address significant concerns to achieve a balanced and equitable trade relationship among the North American partners.
