North American Trade Pact Faces High-Stakes Review

The U.S. Trade Representative’s Office has signaled a confrontational stance, targeting Canada’s supply-managed dairy sector. Washington contends that restrictive quotas and heavy tariffs effectively lock American exporters out of the market. These frictions are compounded by Canadian procurement policies that prioritize domestic firms, creating significant barriers for U.S. suppliers vying for government contracts.

Beyond agricultural and industrial disputes, digital trade has become a new front for conflict. Canada’s proposed digital services tax and the Online News Act remain primary sources of friction, with U.S. officials arguing these measures place an undue burden on American platforms. Tensions are further strained by unresolved disagreements over intellectual property enforcement, energy market practices in Alberta, and provincial restrictions on U.S. alcohol distribution—a retaliatory measure dating back to earlier American tariffs on Canadian goods.