The United States is frustrated with Canada “because it believes Ottawa promised greater foreign access to its dairy and poultry markets as a condition of joining” the Trans-Pacific Partnership trade talks, “and yet has offered nothing,” reports the Toronto Globe and Mail. The newspaper says the friction has exposed “a fundamental disagreement” over expectations when Canada joined TPP talks in 2012. According to its sources, the United States wants to address issues left on the sidelines during NAFTA negotiations – poultry and dairy – and believes Canada promised to put them on the table. Canada is adamant that it made no such concessions when it joined the TPP sessions. U.S. officials hope to wrap up TPP discussions during a meeting in Hawaii at the end of July.
Canadian dairy and poultry producers are protected from foreign competition by tariffs of up to 300 percent on imports, says the Globe and Mail. “A rise in imports could mean cheaper chicken, milk and cheese for consumers but could also destabilize Canada’s carefully calibrated supply management system, which tightly regulates the price and production of milk, chicken and eggs.”