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Ottawa avoided trade setbacks. But Trump may come to supply management

Dreams come true. U.S. President Donald Trump hopes Canada’s tax on U.S. tech companies disappear on Friday, until Sunday.

Most of the time, the federal government will soon play such a valuable card, which is a sense of surprise. The Digital Services Tax (DST) that Ottawa should have collected on Monday was not popular with the U.S. government and the tech giants it targets, such as Meta and Amazon, and conveniently, at home business groups are not particularly fond of.

By canceling it, Canadian negotiators have caused a loss on the road to a trade deal with the United States – because it has been talking about it all the time. But the move could put Canada against the wall on the issue of supply management far away.

“I think we can expect them to follow us [supply management] Again, because it has been a long-standing irritating.

trump card Long-term opposition Canada’s supply-managed dairy system, complaining that it is characterized by high tariff rates for US dairy exports to Canada (more on this later). He made it a problem in the 2018 negotiations by the Canadian-US Mexico Agreement (Cusma), but ultimately allowed the free trade agreement to pass without having to resolve.

Now, Trump is back to stinking at our cheese. He claimed on Friday that Canada has charged US farmers 400% dairy tariffs.

Watch | Why Trump hates dairy supply management:

How Canada’s dairy supply management system works – and why Trump hates it

Donald Trump is not a fan of Canada’s dairy supply management system – he repeatedly attacked it during his first term and hunted it again as he was preparing to return to the White House. CBC’s Ellen Mauro met with Canadian dairy farmers and explained why the system made the U.S. president-elect so angry.

But when it comes to dairy, Trump’s wishes won’t be so easy due to the recently passed C-202 bill, which prohibits supply management from being used as bargaining in trade negotiations.

The bill is criticized because if the U.S. president issues a final atum targeting Canadian dairy, it could be linked to Ottawa’s hand-extended, threatening to bother Parliament since the federal election, which has largely put aside partisan differences in the face of threats Trump faces.

Hampson said the additional difficulties “are definitely registered in the White House.”

“Huge” power

In the south, the abandoned DST is hailed as a victory. Trump’s trade representative Howard Lutnick thanked Canada for removing it, calling it a “deal-breaking” of any trade deal with the United States, while White House economic adviser Kevin Hassett said the cancellation of taxes paved the way for renewal negotiations.

White House press secretary Karoline Leavitt seems to be full of prestige, saying Carney’s demands for Trump are “in a dilemma” and that Canada’s first commitment to taxes is a mistake.

Watch | Carney says negotiations start over:

Carney said Canada and the United States resume negotiations.

Prime Minister Mark Carney said he had a “good” conversation with U.S. President Donald Trump on Sunday, with the two leaders working to reach a deal by July 21. The federal government canceled the digital service tax over the weekend after Trump stopped all trade talks.

But if there is any indication of what will happen next, it is from Pete Hoekstra. US Ambassador to Canada, Talking about CBC Power and Politics He said Monday night he believed Carney would push parliament to put supply management on the table if the deal between the U.S. and Canada depends on it.

“I strongly believe that if… the Prime Minister and the President reached a trade agreement, for whatever reason, the Parliament said ‘You can’t do it,’ the Prime Minister might find a way to let the Parliament do it. [his] Will,” he said.

“The Prime Minister and the President, they have great power.”

If Trump really wants to put economic pressure on Canada,” he could try this exact same strategy and say, ‘I’m going to walk away until supply management disappears,”

Trump’s numerous claims about Canadian supply-managing dairy systems are often inaccurate. Only when exports exceed set quotas, high tariffs on U.S. dairy products are high, and the U.S. has never been close to exceeding them (a U.S. dairy lobby thinks it is because it is because it is.”Trade protectionist measures“Imposed by Canada). Below the quota, American dairy products are not tariffed under Kusma’s leadership.

Canada’s dairy hall welcomes C-202’s passage, but some agriculture Industry Leader It argued that it stifled their industry to support dairy products and gave it to the country Small swing room Trump should knock more concessions.

“I think the Carney administration is now in the position where rubber is really going to be on the road,” McHerchel said. “If you’re paying a digital tax, is it a concession that Mr. Trump will see as a concession and acceptance, or is Mr. Trump going to continue pushing Canada, saying, what about supply management now?”

Watch | LeBron says:

Canada’s dairy supply management “not negotiable” with us: LeBron

Chief Political Correspondent Rosemary Barton spoke with Treasury Secretary Dominic Leblanc about Canada’s response to a trade war initiated by U.S. President Donald Trump. Additionally, British Columbia Prime Minister David Eby introduced how his province promoted efforts to buy Canadians, and Sunday Scrum discussed what this means for Canadian politics.

The “existence” problem of liberals

He said it was a “dangerous territory” of the minority Carney government, which needs the support of other parties to pass its agenda.

“If the current administration looks like it will introduce bills that threaten supply management, that could cause a lot of political headaches.”

Bill C-202 was sponsored by Bloc Québécois leader Yves-François Blanchet as a tribute to the Quebec Party base, where the dairy farming industry is very concentrated. Conservatives also want to expand in the province while maintaining rural bases in Ontario.

“This is the existence of the political fate of the Carney Liberal government,” Hampson said.

“So it’s going to be a tough guy. And if Americans decide to follow us, I’m not sure if there’s any way to keep that circle in balance.”

The conversation between Trump and Carney could reach the finish line with the remaining three weeks left until the July 21 deadline for the U.S. trade agreement on Canada will likely reach the finish line, said Lori Turnbull, a political science professor at Dalhousie University.

But Trump is upset about supply management, “This is a question, is that enough for him? How long?” she said.

“Now that we have made concessions, Trump believes this is his victory, and now he has the opportunity to do so in this short period of time [where Canada can] It’s also in the American interest to shift some things to Trump’s feelings…the real free trade relationship, the new economic and security contract for Canada and the United States. ”

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