US Demands to Preserve Free Trade with Canada: Dairy, Streaming, and More

Negotiations on renewing the North American free-trade agreement are paused, but Washington has released its clearest set of demands yet. The aim is to keep the USMCA in place while pushing for changes in several sensitive areas.

Open up the dairy market for U.S. farmers

The United States has long pressed Canada to reform its dairy system, which uses quotas to manage production and imports to support farmers. A previous administration warned of steep tariffs in a letter, signaling Washington’s intent to secure better access. U.S. officials argue that Canada’s dairy framework limits American exports and keeps prices higher for Canadian shoppers. They say Canada should grant greater market access under the USMCA and address practices that affect competition.

Canada remains a major buyer of U.S. dairy, importing about $1.1 billion in 2024. Ottawa defends the system as essential for Canadian farmers and consumers, while U.S. negotiators push for a broader opening under the pact.

Revise online streaming and digital-media rules

The Online Streaming Act, passed in 2023, requires platforms such as Netflix and Spotify to fund and promote Canadian content. It also gives Canada’s broadcast regulator power to fine companies that fail to comply. Ottawa says the law protects local artists and creators for future generations.

U.S. officials say the legislation discriminates against American tech and media firms and should be revised. They also seek a resolution on the Online News Act, which requires tech giants to pay Canadian publishers for content on their platforms. Meta has blocked Canadian news on Facebook and Instagram in protest.

Bring U.S. liquor back to Canadian shelves

In response to tariff measures, many provinces pulled U.S. alcoholic beverages from shelves. The United States hopes to see American liquor back on sale if the agreement is extended. Ontario and most other provinces paused imports, with Alberta and Saskatchewan continuing to sell some products.

Ontario’s premier has said the boycott would stay in place until a tariff deal or a renegotiated USMCA is agreed.

Alberta–Montana electricity dispute

The talks also highlight energy trade as a remaining point of contention. Washington notes what it sees as unfair treatment of Montana electricity producers by Alberta’s grid operator. Alberta denies discrimination and says Montana remains a net exporter of power to Alberta, with trade patterns shifting in recent years.

Alberta’s government emphasizes its commitment to trade obligations and to a stable cross-border energy relationship with Montana.

Expert comment

Expert comment: Trade analyst Dr. Mia Carter notes that these issues reveal broader questions about market access and regulatory alignment. Any concrete changes will require time and political will from both sides.

Conclusion

The core asks are clear: broader dairy access, revised streaming and news laws, the return of U.S. liquor to Canadian shelves, and a path to resolve energy-border disputes. Whether Ottawa and the provinces will concede remains uncertain as talks continue.

Short summary

Short summary: The United States is pressing Canada for more dairy market access, reforms to streaming and news laws, and the return of U.S. liquor to Canadian shelves. It also calls for a resolution of cross-border energy issues. Success depends on concessions from Canada’s federal government and its provinces as negotiations proceed.

Key insight: The United States uses its bargaining power to push for dairy access, digital-media reforms, and cross-border energy cooperation, aiming to modernize the trade pact with Canada. BBC News

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