Dairy Supply Management Could Sour Canada-US Trade Talks

Canada canceled a digital service tax on U.S. technology companies this week in order to preserve trade talks with U.S. President Donald Trump, but another irritant, in agriculture, could be a bigger thorn in the ongoing negotiations.

Analysts said ditching the digital services tax was politically easy for Prime Minister Mark Carney compared to even discussing Canada's supply management system that since the 1970s has tightly controlled supplies of dairy, eggs and poultry by restricting production and limiting imports through onerous tariffs. 

When Carney met with Trump in mid-June, he said the two leaders were aiming for a new economic agreement by July 21...

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