About 80 per cent of Canada’s 9,256 dairy farms were located in Quebec and Ontario in 2024, according to Statistics Canada.Jacques Boissinot/The Canadian Press
Recently tabled legislation to legally lock in supply management rules on egg, dairy and chicken imports to protect those sectors has reignited friction among Canada’s farmers about how it could affect trade negotiations.
Imports of poultry, egg and dairy products are limited to certain quotas, before they are subject to steep tariffs. If passed as proposed, the bill would prohibit increasing the quotas or reducing the tariffs imposed by Canada on imports that exceed that quantity.
The private member’s bill, put forward on May 29 by the Bloc Québécois, is the third such iteration from the party.
Supporters of the bill say it would protect local producers in a domestic market that would be overwhelmed if it opened to other markets, particularly the United States. The protectionist measures would also prevent the government from offering foreign access to Canada’s supply-managed farm sector in trade negotiations.
Alberta farmer’s stint in jail highlights controversy over supply management
Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance, warns the proposed law could negatively affect some Canadian exporters at the negotiating table. In particular, Canada’s breadbasket and beef exporters could be at greater risk of losing out on stronger agreements in exchange for security for a few sectors.
“If Canada is taking parts of the economy off the table from the beginning, another country is going to take parts of the economy off the table,” Mr. Harvey said, suggesting supply-managed industries can be protected at the bargaining table without legislation.
Canada’s desire to protect its supply-managed industries is opposed by trade partners and has complicated past international deals, especially with the United States.
Ian McCreary owns a 1,200-hectare cattle and grain farm near Bladworth, Sask., located 148 kilometres northwest of Regina.
Mr. McCreary says he’s not concerned about the bill because he doesn’t believe it will harm future trade agreements with countries importing grains and oilseeds. He also doesn’t expect the U.S. to stick to its trade agreements when they are made.
“If we didn’t have supply management in this circumstance, Canada’s milk and egg sector would be at very significant risk of having been pushed down by the U.S. – and then they turn around and change all the rules anyway.”
Mr. McCreary acknowledges his opinion may be in the minority of grain and oilseed producers.
Andre Harpe farms mostly barley and canola on about 2,000 hectares northwest of Grande Prairie, Alta., and is the chair of Canadian Canola Growers Association. He’s concerned about the effect the bill will have on Canada-United States-Mexico Agreement (CUSMA) discussions. The free-trade pact is up for review in 2026.
“It makes it really tough to have a fair and open discussion on what should be traded and what can be traded,” Mr. Harpe said.
The majority of Canada’s chicken, egg and dairy producers are located in Eastern Canada. Quebec and Ontario were home to about 80 per cent of the country’s 9,256 dairy farms in 2024, according to Statistics Canada. Similarly, Ontario and Quebec topped the number of chicken producers.
In comparison, Western Canada farms nearly all of the country’s canola, spring wheat and barley as well as the vast majority of cattle.
Dairy Farmers of Canada has previously expressed support for legislation locking in supply management. In an e-mailed statement, president David Wiens said the organization will work with political leaders as “they continue to support agriculture and prioritize our national food sovereignty and security.”
In past trade agreements, Canada made concessions to allow trade partners more access in supply-managed markets, including in the last agreement with the U.S. and Mexico in 2018. The Bloc’s agri-food and supply management critic Yves Perron takes issue with that.
“Giving away 1 per cent, 2 per cent in every negotiation, we are killing the system, but slowly,” Mr. Perron said.
Canada later compensated supply-managed sectors for the impact of the CUSMA signing with more than $1.7-billion in direct payments and programs.
Bill C-202 mirrors a pair of bills put forward by the Bloc in 2020 and then again in 2023. Its last iteration was passed in the House of Commons with support from all parties two years ago but didn’t make it through the Senate before the election was called.
Mr. Harvey was disappointed with how quickly the new bill passed its first round of readings – moving through the House in one week. The trade alliance had urged members of Parliament not to allow it to move forward. The bill is now headed to the Senate.
“We were really hoping that the government would take it more seriously this time because we do think it’s a terrible piece of trade policy,” Mr. Harvey said.
When the new iteration of the bill passed through the House on Thursday, Bloc MP Martin Champoux challenged Prime Minister Mark Carney to support the bill.
“I have been clear about this since January. Supply management will never be on the table in negotiations with the Americans. We will protect supply management,” Mr. Carney responded.