What You Need to Know About USMCA & Canada Dairy Trade
November 2025
What’s the Issue?
Under the USMCA trade deal, Canada agreed to give the U.S. access to certain dairy import amounts called tariff-rate quotas (TRQs). These quotas are supposed to let a set volume of U.S. dairy products go into Canada at lower tariffs.
Source: NMPF+2United States Trade Representative+2
But here’s the problem: Canada’s way of managing those quotas has kept most of the benefits inside its own dairy processing industry — not making it easy for U.S. producers, retailers, or food service businesses to take full advantage.
Source: NMPF+2U.S. Dairy Export Council+2
In January 2023, the U.S. asked for a new panel under USMCA to challenge Canada’s allocation policies. (United States Trade Representative+1) Then in late 2023, the panel issued a decision: while some of Canada’s actions were questioned, the ruling did not fully force Canada to change its quota structure.
Source: United States Trade Representative
Why It Matters for U.S. Dairy Producers
Limiting access to these quotas means reduced opportunities to export into the Canadian market — which could otherwise be a strong revenue source.
When quota access is unfairly restricted, U.S. dairy products become less competitive on the Canadian market — hurting both farmers and exporters.
The ongoing trade dispute sends a signal: U.S. dairy stakeholders are pushing for real accountability in trade agreements — not just promises.
What Can You Do to Help / Get Involved
Stay Informed: Keep up with trade-policy news from organizations like NMPF and USDEC, which are leading the charge.
Make Your Voice Heard: Reach out to your elected officials. Let them know that fair quota access matters for rural farms and U.S. exports.
Support Advocacy Efforts: Encourage your fellow farmers or industry partners to back USMCA enforcement and fair trade.
Attend Meetings or Workshops: When trade-policy briefings or Ag-industry roundtables happen, show up and bring questions.
The Big Picture
This isn’t just about exports — it’s about fairness and long-term economic opportunity for U.S. dairy producers. How Canada manages its TRQs under USMCA directly impacts how much of our dairy can reach Canadian buyers. By staying engaged, the dairy community can help push for a system that works for farmers, processors, and the long future of U.S. exports.
If you have questions on how you can be involved, please feel free to reach out to us @ westerniowadairy@gmail.com.
