Liberals pledge dairy-quota support, farm subsidies in tariff plan for agriculture

OTTAWA — The federal Liberals are pledging to strengthen Canada’s agri-food sector and maintain the production quotas that have caused friction in trade talks with the U.S.

Liberal Leader Mark Carney says in a media statement that supply management is “off the table in any negotiations” with U.S. President Donald Trump, who has long opposed Canada’s system of production quotas for dairy, poultry and eggs.

The party says it has a plan “to protect farmers, ranchers, and agri-food workers” which involves cutting regulations and earmarking $200 million for domestic food processing and $20 million for marketing.

The Liberals say they also would make permanent the recent doubling of the payment cap to $6 million for AgriStability — a program that works like crop insurance — and would also boost cleantech subsidies.

They say they also would have the Canadian Food Inspection Agency implement “mutual recognition of food-safety standards with reliable trading partners,” with the aim of speeding up the adoption of new technology.

Carney is in Ottawa with no scheduled campaign events today, instead focusing on his duties as prime minister as Trump prepares to announce tariffs on multiple countries this afternoon.

Carney is chairing a virtual meeting of his council on Canada-U.S. relations, and later a meeting of his cabinet committee on Canada-U.S. relations and national security.

Farm groups have criticized federal supports in recent years, arguing the programs don’t always cover their needs or respond quickly enough to challenges faced by the agriculture sector.

The Trudeau government endorsed Bloc Québécois legislation that would have instructed Canadian trade negotiators not to negotiate trade access to parts of the dairy sector — legislation which drew widespread criticism from other agricultural sectors and trade experts. The legislation died in the Senate when Parliament was prorogued.

Nearly half of Canada’s dairy farms are located in Quebec.

Canada’s dairy quotas have emerged as flashpoints in trade talks with the U.S., the European Union and New Zealand. Proponents of the quotas argue the system provides stability for consumers and workers.

The Fruit and Vegetable Growers of Canada is calling for an emergency fund to compensate greenhouse operators hit by tariffs and “domestic price supports to prevent market collapse during harvest periods.” The group argues its sector has unique challenges due to “the perishability of products” and the format of supply chains.

This report by The Canadian Press was first published April 2, 2025.

Dylan Robertson, The Canadian Press