Explainer: Spilt milk? Why are the US and Canada Fighting Over Dairy?

WINNIPEG, Manitoba – The United States on Tuesday said it was seeking a second trade dispute settlement panel over Canada’s dairy import quotas, accusing Canada of not meeting obligations to open its market to American producers. The move is the latest salvo in longstanding tensions between the trade partners over Canada’s protected dairy industry.


Canada has tightly controlled supplies of dairy, eggs and poultry since the 1970s, restricting how much farmers can produce and limiting imports through onerous tariffs.

Import quotas limit the quantity of product that can enter Canada from other countries at a low rate of duty.

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