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

As talks on the USMCA approach a critical juncture, Washington has issued its most detailed demands to keep the cross-border trade framework intact with Canada. The proposals center on dairy market access, changes to streaming and online content rules, and the status of U.S. liquor sales in Canadian stores.

Open the dairy market to US farmers

The United States has long pressed Canada to ease its dairy supply management system. Canada uses quotas and controls to support local dairy farmers, which can keep prices higher for consumers. Washington argues that under the USMCA Canada should grant greater access to American dairy products. Canada imported about USD 1.1 billion worth of U.S. dairy goods in 2024, making it one of the top customers for American dairy. The U.S. also says the current framework limits market access and should be expanded under the pact. There is a tariff‑free quota for some U.S. dairy, but that limit has never been reached, so Canadian tariffs on U.S. dairy have not been imposed.

Revise streaming policies under Trudeau era

The Online Streaming Act, passed in 2023 under Prime Minister Justin Trudeau’s government, requires major platforms like Netflix and Spotify to fund and promote Canadian content. It also gives Canada’s broadcast regulator the power to penalize companies that do not comply. The goal is to protect Canadian creators, but Washington says the law treats U.S. tech and media firms unfairly and should be revised. A separate Online News Act, which compels large platforms to pay Canadian news outlets for their content, has sparked friction, with Meta briefly blocking Canadian users from accessing news on Facebook and Instagram in protest.

Put US liquor back on Canadian shelves

In response to tariffs imposed by the United States, many provinces removed U.S. alcohol from store shelves in a show of protest. The United States argues that U.S. liquor should be available again if the USMCA is extended, citing economic harm to American producers from the boycott. Ontario and most provinces have kept the ban in place, with Premier Doug Ford stating the ban will remain until a tariff deal or a revised USMCA is reached.

Address Alberta–Montana electricity tensions

Other issues noted by the U.S. include procurement rules in Ontario, Quebec and British Columbia that Washington views as discriminatory, alongside complex customs procedures for U.S. exports. The United States also highlights what it calls unfair treatment of Montana electricity producers by Alberta. A U.S. government report claims Alberta’s non‑profit grid operator blocks Montana generators from accessing the Alberta market, though Alberta officials deny discrimination and say Montana remains a net exporter of electricity to the region. Alberta’s Utilities Minister said the matter is longstanding but that Alberta remains committed to its trade relationship with Montana.

Expert comment: Analysts warn that breakthroughs will depend on political will in Ottawa and the provinces, and on whether the U.S. is prepared to offer meaningful concessions. The outcome will hinge on balancing national interests with the broader goals of the trade pact.

Short recap

In short, Washington links extending the USMCA to concessions on dairy access, streaming and online content rules, and liquor sales. Canada and Mexico want the agreement to continue, but several friction points remain. The path forward will require careful diplomacy and practical compromises on sensitive sectors.

Key takeaway: The United States is using trade leverage to demand changes in dairy access, online content rules, and liquor sales as a condition for extending the USMCA. BBC News

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