Weekly Discussion 6: Canada's new import policy in dairy industry Weekly Discussion 6 1 unread post The government of Canada for years has been protecting the dairy industry from foreign competitors by imposing a high rate of import tariffs (more than 200%) on products such as cheese in this industry. Without a doubt, free entry of cheese to the country could undercut farmer milk prices. Recently, under the administration of Justin Trudeau, Canada set a new rule of reducing tariff barriers dramatically in this industry to let foreign diary to enter the country. This rule is known as the Tariff-rate quota (TRQ). Read more about the TRQ system: https://www.canada.ca/en/global-affairsews/2017/08/backgrounder_= canadasnewtariffratequotasforcheeseimportsfromthe.html U.S. dairy farmers and exporters found this new policy a positive sign for expansion to the Canadian market but then they found Canada has allocated 85%-100% of the quota to Canadian processors and an only a maximum of 15% to Canadian distributors. They assert this is a violation of the commitment to loosening trade barriers under the United-Mexico-Canada agreement (USMCA). Read more about the case and news here: https://financialpost.comews/economy/ottawas-defeat-in-dairy-dispute-with-u-s-could-mean-more-choice-at-the- cheese-counter-for-consumers & https:/financialpost.comews/economy/trudeau-government-stands-firm-on-new-dairy-rules-despite-anger-from- U-s-milk-lobby. & https://www.agri-pulse.com/articles/17248-dairy-on-edge-over-canada-trq-disputeQuestions: 1- Why did Canada decide to loosen the import restrictions on dairy products and set a new import policy? 2- How do U.S. dairy exporters will be hurt by this new policy? 3- Do you think Canada will benefit from the new policy? How