Options for the Reform of Supply Management in Canada with Trade Liberalization

Abstract

Following the Uruguay Round of trade negotiations (1986–1994), Canada replaced its import quotas on sensitive products with tariff rate quotas. These tariffs have effectively blocked over-quota imports and are likely to continue to prevent imports on most supply-managed products following the successful completion of the Doha Development Round trade negotiations. However, we argue that tariff cuts in the post-Doha Round period will severely limit Canada’s ability to restrict imports, and it is important to use this opportunity to better position supply-managed industries to compete. This paper reviews a number of reform options that could be pursued.