Protects Dairy in Future Trade Deals

Summary#

This bill changes the Department of Foreign Affairs, Trade and Development Act to limit what the Minister of Foreign Affairs can agree to in trade treaties. It bars the Minister from agreeing to increase import quotas or lower above‑quota tariffs for dairy, poultry, or eggs. It is aimed at protecting Canada’s supply management system in future trade talks. It does not change current tariffs or existing trade agreements.

• Stops the Minister of Foreign Affairs from agreeing to larger tariff rate quotas (TRQs) for dairy, poultry, and eggs in any trade treaty (Bill Section 10(2.1)(a)).
• Stops the Minister from agreeing to lower tariffs charged on imports of these goods above the TRQ in any treaty (Bill Section 10(2.1)(b)).
• Leaves current tariffs, quotas, and past trade commitments unchanged; effects are only on future commitments (Bill Section 10(2.1)).
• Applies only to commitments made “by international trade treaty or agreement” by the Minister of Foreign Affairs (Bill Section 10(2.1)).

What it means for you#

• Households

  • No immediate change to food prices. Current rules for dairy, poultry, and eggs stay the same. The bill only limits future trade concessions by the Minister of Foreign Affairs (Bill Section 10(2.1)).
  • In future trade deals, there would be no new access that increases import quotas or lowers above‑quota tariffs for these goods via this Minister (Bill Section 10(2.1)).

• Farmers and workers in dairy, poultry, and eggs

  • More certainty that future trade treaties cannot, through this Minister, expand import quotas or cut above‑quota tariffs for your products (Bill Section 10(2.1)(a)-(b)).
  • No change to how supply management works today; domestic quotas and prices are unchanged by this bill.

• Importers, food processors, grocers, and restaurants

  • You would not gain new import access for dairy, poultry, or eggs through future trade treaties negotiated by the Minister of Foreign Affairs that increase TRQs or reduce above‑quota tariffs (Bill Section 10(2.1)).
  • Planning for supply and product lines should assume current protection levels remain unless changed by domestic law or by other authorized actors.

• Trade negotiators and policymakers

  • The bill narrows negotiating options for future agreements by setting a legal red line for this Minister on dairy, poultry, and eggs (Bill Section 10(2.1)).
  • It does not alter existing agreements or tariff schedules; it only limits future commitments via treaties by the Minister of Foreign Affairs.

• Provinces, territories, and local governments

  • No direct new duties or costs. Trade policy remains a federal responsibility. Existing market access under current agreements is unchanged.

Note: A tariff rate quota (TRQ) lets a set amount of a product enter at a low tariff. Imports above that amount face a higher tariff.

Expenses#

Estimated net cost: CAD $0/year (no direct appropriations or tax changes).

• No fiscal note identified. Data unavailable.
• The bill makes no appropriations and does not change tariff rates or revenues on its own; it restricts future treaty commitments by the Minister of Foreign Affairs (Bill Section 10(2.1)).
• Any broader economic effects (e.g., prices, trade flows) are not quantified. Data unavailable.

Proponents' View#

• Protects supply-managed sectors by preventing treaty commitments that expand import quotas or cut above‑quota tariffs for dairy, poultry, and eggs (Bill Section 10(2.1)(a)-(b)).
• Provides policy certainty for farmers and processors by setting a clear legal limit for future trade negotiations by this Minister (Bill Section 10(2.1)).
• Preserves the current structure of supply management unless changed by domestic law, rather than through external pressure in trade talks (Bill Section 10(2.1)).
• Does not unwind existing trade agreements; it simply prevents further concessions in this area by this Minister, which proponents view as a balanced, forward-looking safeguard (Bill Section 10(2.1)).

Opponents' View#

• Reduces Canada’s flexibility in future trade negotiations by removing two common bargaining tools—increasing TRQs and lowering above‑quota tariffs for these products—potentially complicating the conclusion of new agreements (Bill Section 10(2.1)).
• Limits a pathway that could, through future treaties, lower import barriers and potentially reduce consumer prices for affected goods; the bill blocks that option via this Minister (Bill Section 10(2.1)(a)-(b)). Data unavailable on price impacts.
• Applies only to the Minister of Foreign Affairs; it does not mention other federal ministers responsible for trade, which could create uncertainty about who can commit what on behalf of Canada (Bill Section 10(2.1)).
• Does not change or roll back existing access granted in current treaties, which may leave both supporters and critics of supply management dissatisfied with the bill’s practical reach (Bill Section 10(2.1)).