Lynda Farley (@freedomvan)
Posted
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JD Duke a day ago · Everyone thinks we have free trade with Canada. Yesterday I laid out the real numbers - 241% on milk, 245% on cheese, 298% on butter. Hundreds of Carney supporting Canadians replied "but you never filled the quota." Here's why they made sure you never could. So the Canadians flooded my last post with the same line: "You never paid 270% because you never even filled your 3.6% quota." Exactly. That's the whole scam. And they know it. Let me show you how Ottawa rigged it on purpose. Canada didn't give that tiny 3.6% USMCA quota to the free market. They gave it to their own cartel. Here is how Canada splits it up: 80-85% is reserved EXCLUSIVELY for Canadian dairy processors. Another 10-20% goes to "further processors" - also Canadian. Only 10-15% is left for distributors. 0% for retailers. 0% for food service. Banned from even applying. Think about that. A Canadian processor MILKS COWS. He owns Canadian quota. He IS the competition to the Wisconsin or New York farmer. Why would he ever use his allocation to import American cheese to compete against his own milk? He won't. He sits on it, doesn't use it, or imports a tiny specialty product to check a box. The people who ACTUALLY want to buy American - grocery chains, restaurants, cheese shops, Costco, Walmart - are legally forbidden from applying for the quota. That's why the quota goes unfilled. Not because there is no demand. Because Canada gave the keys to the people with every incentive NOT to use it. And we proved it in court. The USTR filed the first-ever USMCA enforcement case over this exact scam. In January 2022, a USMCA panel agreed with America that reserving most of the dairy quota for Canadian processors violates the agreement. Canada promised to fix it. They gamed it again - banning retailers and using a market-share formula. So America sued them a second time in 2023. That panel ruled 2-1 for Canada on a technicality, but even after their "fix" the fill rate was only 42% across all quotas. Nine of fourteen US quotas were less than half filled. New Zealand had to sue them too under CPTPP for the exact same trick. This is how supply management works: Step 1: Create a tiny 3.6% keyhole and call it "free trade." Step 2: Give the key to your own processors who compete with Americans. Step 3: When they don't import, go on Facebook and say "See? Americans don't even want to sell to us, so we never had to charge the 270%." It's a cartel. It's intentional. It's designed to look open while staying 96.4% closed. In America, we let Canadian steel, aluminum, lumber and cars roll across the border with almost zero tariff and sell to 340 million Americans. In Canada, an American dairy farmer 50 miles away can't sell milk because Ottawa gave his quota to his competitor. That's not free trade. That's a one-way street for 50 years. America First is simple: If you reserve 85% of your market for your own guys and ban our retailers from buying, we will do the same to you. Reciprocity is not a trade war. It's finally telling the truth.