Financial compensation for supply-managed sectors

Published: February 10, 2021


The Canada-United States-Mexico Agreement (CUSMA) provided increased access to domestic markets for dairy, poultry and egg. Given Canada’s supply management system in those sectors, this will lead to reduced market share for existing producers and processors. Past trade agreements such as CETA and CPTPP have resulted in compensation to supply managed sectors. This note estimates the cost of the Government’s CUSMA-related commitment to provide full and fair compensation to existing producers and processors.

Fall Economic Statement 2020 reiterated the Government’s commitment to compensate the supply managed sector for CUSMA but did not provide a cost estimate.