Lawrence Herman

The US has pressured Canada to scrap supply management before USMCA negotiations have even begun. Telling the Americans to go fly a kite… would mean narrow agriculture interests could imperil improvements in the entire Canada-US trading framework. But let’s assume for argument’s sake that intense pressure from the Americans results in agreeing to increased US dairy imports. …To prepare for this, these industries need to pivot. …Ironic as it seems, it’s the US softwood lumber industry that offers a model for Canadian dairy. For more than 40 years, US softwood producers have successfully used countervailing duties to fight Canadian imports. …These efforts have borne fruit, resulting in decades of countervailing duties on Canadian imports. …The trade remedy option makes eminent sense. Why? Because U.S. dairy producers are heavily subsidized and their exports would almost certainly contravene both the WTO’s Subsidies & Countervailing Measures Agreement and the USMCA itself. [to access the full story a Globe subscription is required]