Jean-Michel Laurin, spokesperson for the Dairy Processors Association of Canada, characterized the U.S. demands as unsurprising given CUSMA’s scheduled 2026 revision, noting that the United States has long pursued greater Canadian market penetration. Laurin emphasized that dairy market access represented a contentious negotiation area during CUSMA’s original development under the first Trump administration, when Canada made significant concessions that continue imposing substantial costs on the domestic industry. Under the current agreement, Canada permits the United States tariff-free access to nearly four percent of its dairy market—resulting in approximately $140 million in annual losses for Canadian dairy processors according to the organization’s estimates—creating what Laurin described as a “massive” trade deficit for Canadians on the dairy front.

The U.S. demands extend beyond simple market access expansion to include restrictions on Canadian dairy product exports to international markets, with Laurin warning that each proposed change would directly impact producers and processors throughout Atlantic Canada. Prime Minister Mark Carney told reporters Thursday that negotiating a sectoral deal outside CUSMA talks appears unlikely, though he expressed willingness to engage in discussions about any sector if the United States seeks such dialogue. Carney emphasized that Canada will only pursue agreements serving the interests of Canadian workers and families, positioning the government’s negotiating stance around protecting domestic economic welfare rather than accepting unfavorable terms simply to preserve the broader trade framework.

Dalhousie University Agri-Food Lab Director Sylvain Charlebois questioned why the dairy industry requires additional government assistance, pointing out that Canadian dairy producers have increased production by four to five percent over the past five years since CUSMA’s negotiation. Charlebois challenged the rationale for compensation payments when milk production continues expanding while quotas successfully meet market demand, arguing that trade deals don’t necessarily undermine supply management systems because quota frameworks simply recalibrate. He noted that some farmers exit the industry while others acquire additional quotas at no cost, with many producers actually becoming wealthier since the original U.S. trade deal ratification under Trump’s first administration, suggesting the sector’s profitability remains robust despite trade concessions.