EDITORIAL: Cowed by the dairy industry?

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Prime Minister Mark Carney has proclaimed that the U.S. has 30 days to reach a trade deal with us — or else. If he doesn’t see progress in the talks by July 21, he will “adjust” this country’s tariffs on aluminum and steel coming from the U.S.  

“Within the coming 30 days, we’ll continue these negotiations, of course, in good faith,” Carney told reporters.  

“In parallel, we must reinforce our strength at home and safeguard Canadian workers and businesses from unjust U.S. tariffs that exist at present,” he added.  

At the same time, Parliament passed a bill that makes it illegal for the government to negotiate anything related to supply management. The new law, put forward by the Bloc Quebecois, prohibits negotiations that would change this country’s quotas on dairy production and restrictions on imports of eggs, milk, cheese and other products. Supply management has long been a trade irritant, not just with the U.S. but with other nations, including the U.K.   

To protect the Canadian dairy industry, there are strict quotas on imports. Virtual monopolies are not good for the consumer. Bakers will remember the so-called “Buttergate” boondoggle in 2021, in which consumers found their butter had changed in consistency and was more difficult to spread. This was eventually attributed to an increased use of palm oil in cows’ diets. That would be less likely to happen if Canadians could source butter from other countries.  

The other obstacle in the trade deal is the Justin Trudeau government’s digital sales tax on U.S. tech giants such as Amazon and Meta. Finance Minister Francois-Philippe Champagne indicated this week that the first collection of the tax will go forward as planned on June 30, although he gave the government some wiggle room on whether it will stay, telling reporters, “It’s something we’re discussing as part of broader discussions.” 

Other industries across this country have been impacted by tariffs. Workers in Ontario’s auto, steel and aluminum industries and Alberta’s oil and gas industry are being used as pawns in trade talks. Yet the government saw fit to tariff-proof one industry with an act of Parliament.  

Some elbows, it seems, are up higher than others.