Dairy, Poultry, Eggs Off Limits in Trade

Summary#

This bill changes the Department of Foreign Affairs, Trade and Development Act to restrict what the Minister of Foreign Affairs can agree to in trade treaties. It bars the Minister from agreeing to expand import access or cut above‑quota tariffs for supply‑managed goods: dairy products, poultry, and eggs (Bill, s. 10(2.1)). A tariff rate quota (TRQ) is a system where a set amount of a product can be imported at a low tariff; imports above that amount face a much higher tariff.

• Prohibits the Minister from agreeing, in any trade treaty or agreement, to increase TRQs for dairy, poultry, or eggs (Bill, s. 10(2.1)(a)).
• Prohibits the Minister from agreeing to reduce tariffs on above‑quota imports of those goods (Bill, s. 10(2.1)(b)).
• Leaves current domestic supply management rules unchanged; it only restricts future treaty commitments.
• Applies upon coming into force; the bill sets no phase‑in or end date. Data on timing of Royal Assent unavailable.

What it means for you#

• Households

  • No immediate change to grocery prices or product availability, since the bill does not change current quotas or tariffs. It only limits future trade concessions (Bill, s. 10(2.1)).
  • Future trade deals will not expand import quotas or cut above‑quota tariffs for dairy, poultry, or eggs through commitments by the Minister of Foreign Affairs.

• Farmers and producers (dairy, poultry, eggs)

  • Greater policy certainty: future trade treaties signed by the Minister of Foreign Affairs cannot promise larger import quotas or lower above‑quota tariffs for your sectors (Bill, s. 10(2.1)).
  • No change to existing quota levels, farm operations, or domestic rules today.

• Processors, retailers, and food service

  • Import access for dairy, poultry, and eggs will not be expanded via treaty commitments from the Minister of Foreign Affairs. Planning for sourcing and product lines can assume current TRQs and above‑quota tariffs remain in place unless changed by domestic law.

• Importers and distributors

  • No new import quota volumes for the covered goods can be promised in trade treaties by the Minister of Foreign Affairs. Above‑quota tariff cuts for these goods are also barred in such treaties (Bill, s. 10(2.1)).

• Other exporters and sectors

  • Canada’s trade negotiators will have less ability to offer market access in dairy, poultry, and eggs as a bargaining chip in future trade talks. Any effects on other sectors depend on future negotiations. Data unavailable.

• Federal government and trade negotiators

  • Adds a legal limit on the Minister of Foreign Affairs’ authority in trade treaties for the listed goods (Bill, s. 10(2.1)).
  • The bill does not mention the Minister of International Trade. Potential overlap or division of roles is not addressed in the text. Data unavailable.

Expenses#

Estimated net cost: Data unavailable; the bill contains no direct appropriations or revenue changes.

• No spending, taxation, fees, or new programs are created in the bill text.
• Any indirect fiscal effects (for example, future compensation avoided or foregone trade benefits) are not quantified in publicly available materials. Data unavailable.
• No official fiscal note identified. Data unavailable.

Proponents' View#

• Protects supply management by preventing future trade treaties from expanding import quotas or cutting above‑quota tariffs for dairy, poultry, and eggs, adding a clear legal guardrail (Bill, s. 10(2.1)).
• Provides stability for farmers and processors in these sectors by reducing uncertainty about future trade concessions that could affect domestic market share (Bill, s. 10(2.1)).
• Limits the need for future government mitigation or adjustment programs tied to market‑access concessions in these sectors; this assumes such concessions would otherwise occur. Data unavailable.
• Keeps current policy settings intact without changing domestic laws or requiring new spending, making the measure simple to administer (Bill text).

Opponents' View#

• Reduces Canada’s flexibility in trade negotiations by removing a common bargaining lever (market access in sensitive agriculture), which could make future agreements harder to conclude or narrow in scope; this is inferred from the prohibition in Bill, s. 10(2.1). Actual impacts depend on partner demands. Data unavailable.
• Could shift negotiating pressure onto other Canadian sectors if partners seek concessions elsewhere when dairy, poultry, and eggs are off the table; this assumes partners require balanced market access. Data unavailable.
• May limit potential consumer benefits from lower prices or more variety that could arise from greater import competition; this assumes expanded access would translate into lower retail prices. Data unavailable.
• Creates possible governance ambiguity by constraining only the Minister of Foreign Affairs in statute, while trade negotiations often involve the Minister of International Trade; the bill does not address coordination or enforcement across ministers (Bill, s. 10(2.1)).