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

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.