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Protects Dairy, Poultry, Eggs in Trade Deals

Full Title:
An Act to amend the Department of Foreign Affairs, Trade and Development Act (supply management)

Summary#

This bill changes the law to protect Canada’s “supply-managed” farm sectors (dairy, poultry, and eggs) in future trade deals. It says the Minister of Foreign Affairs cannot agree, in any international trade treaty, to let in more of these imports at low tariffs or to lower the high tariffs charged once the quota is used up.

  • Blocks trade deal promises that would increase the “tariff rate quota” (the amount allowed in at a lower import tax) for dairy, poultry, or eggs.
  • Blocks promises that would cut the higher tariff charged on imports of these goods above the quota.
  • Does not change current quotas or tariffs; it limits future trade deals.
  • Aims to keep protection for Canadian farmers in these sectors.

What it means for you#

  • Farmers (dairy, poultry, eggs)

    • More certainty that new trade deals will not bring in extra foreign competition in your markets.
    • Easier long-term planning and investment because current protections stay in place.
  • Consumers

    • Grocery prices for milk, cheese, chicken, turkey, and eggs are unlikely to fall due to trade deals, since import limits and tariffs would stay the same.
    • Product variety from imported items likely stays similar to today.
  • Food businesses (restaurants, bakeries, processors)

    • No new relief from import rules that affect the cost of butter, cheese, milk powders, eggs, or poultry inputs.
    • Importers would not get larger low-tariff quotas for these goods.
  • Trade and government

    • Less flexibility in future trade negotiations; Canada could not offer more access in these sectors in exchange for gains elsewhere.
    • Any new or updated trade deal would need to leave current dairy, poultry, and egg protections in place.

Expenses#

No publicly available information.

Proponents' View#

  • Protects supply-managed farmers and the rural jobs and communities that depend on them.
  • Provides stability and predictability for farm incomes and domestic production.
  • Supports food security by keeping strong local production of essential foods.
  • Avoids further market “carve-outs” in future trade deals that could weaken supply management.
  • Maintains high Canadian standards for food quality and animal welfare by limiting import pressures.

Opponents' View#

  • Ties the hands of trade negotiators and may make it harder to reach or upgrade trade agreements.
  • Keeps consumer prices higher than they might be if more lower-tariff imports were allowed.
  • Limits competition and product choice for shoppers and businesses.
  • Could reduce Canada’s leverage; partners may offer fewer concessions in other sectors if dairy, poultry, and eggs are off-limits.
  • Locks a specific policy into law, reducing flexibility if conditions change in the future.

Timeline

Jun 5, 2025 • House

Second reading - Consideration in committee - Report stage - Third reading

Jun 10, 2025 • Senate

First reading

Jun 12, 2025 • Senate

Second reading

Jun 17, 2025 • Senate

Third reading

Jun 26, 2025 • undefined

Royal assent

Trade and Commerce
Foreign Affairs
Economics