C-202FederalTrade
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C-202 (45-1) - An Act to amend the Department of Foreign Affairs, Trade and Development Act (supply management)

Chamber

commons

Stage

3rd Reading

Introduced

May 29, 2025

Progress

This bill would prevent Canada's Foreign Affairs Minister from making trade commitments that weaken supply management for dairy, poultry, and eggs.

Key Changes

  • Prohibits the Minister of Foreign Affairs from agreeing to increase tariff rate quotas on dairy products, poultry, or eggs in any international trade treaty or agreement
  • Prohibits the Minister from agreeing to reduce over-quota tariffs on dairy, poultry, or eggs in any international trade treaty or agreement
  • Adds a new subsection (2.1) to Section 10 of the Department of Foreign Affairs, Trade and Development Act
  • Effectively locks the current supply management import protection levels into federal law

Gotchas

  • This bill could limit Canada's flexibility in future trade negotiations, potentially making it harder to secure concessions from trading partners who want access to Canadian agricultural markets
  • Canada has existing trade obligations under CUSMA and CPTPP that already granted some access to supply-managed sectors; this bill would prevent further concessions but would not reverse existing ones
  • The bill applies only to the Minister of Foreign Affairs, though trade negotiations may also involve the Minister of International Trade — this could create a potential gap in the restriction's coverage
  • Constitutionally, Parliament can restrict ministerial powers through legislation, but this bill could create tension with the executive's traditional authority over treaty-making and foreign affairs
  • No fiscal impact is identified in the bill text, though supply management protections have indirect economic effects on both producers and consumers

Who's Affected

  • Canadian dairy, poultry, and egg farmers who benefit from supply management protections
  • The Minister of Foreign Affairs and federal trade negotiators
  • Foreign exporters seeking greater access to Canadian agricultural markets
  • Canadian consumers who may be affected by pricing in supply-managed sectors
  • Trading partners such as the United States, European Union, and CPTPP countries

Summary

Bill C-202 proposes to amend the Department of Foreign Affairs, Trade and Development Act to restrict what the Minister of Foreign Affairs can agree to in international trade negotiations. Specifically, it would prohibit the Minister from signing any trade treaty or agreement that increases the amount of dairy products, poultry, or eggs that can be imported at lower tariff rates, or that reduces the high tariffs applied to those goods when imports exceed the allowed quota. This bill is aimed at protecting Canada's supply management system, which controls the production and pricing of dairy, poultry, and egg products. Supply management uses import controls (tariff rate quotas) to limit foreign competition and stabilize prices for Canadian farmers. Past trade deals, such as CUSMA (Canada-United States-Mexico Agreement) and CPTPP, have required Canada to open up portions of its supply-managed sectors, which has been a source of ongoing controversy, particularly in Quebec where many supply-managed farms are located. The bill was introduced by Bloc Québécois leader Yves-François Blanchet and reflects longstanding Bloc policy to protect supply management from being eroded through future trade negotiations.

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