Finance Minister Francois-Philippe Champagne says Canada’s supply management system for dairy and poultry will not be part of ongoing trade negotiations with the U.S., as the government aims to secure a bilateral deal by July 21.

“This is off the table,” Champagne told Bloomberg News, referring to the supply management system that includes quotas and tariffs for dairy, eggs and poultry.

The U.S. currently has 3.5% share of Canada's market under the Canada-U.S.-Mexico Agreement, of which all current U.S. dairy exports to Canada enter duty-free. Champagne emphasized that Canada’s trade position differs significantly from other countries currently negotiating with the U.S. “We buy more from the U.S. than China, Japan, the UK and France combined, so we’re not in the same league as others,” he said.

While the U.S., Canada, and Mexico are parties to an existing trade agreement signed during Trump’s first term, the current administration has imposed tariffs outside of that framework, including 50% duties on foreign steel and aluminum and levies on vehicles.

Other countries have reached agreements involving similar or higher tariffs. The U.K. accepted a 10% tariff on up to 100,000 vehicles annually, and British steel exports continue to face higher duties. Vietnam’s agreement includes a 20% tariff, and the European Union is considering a deal that includes 10% tariffs on many of its exports, according to sources cited by Bloomberg.

“The endgame for us is to have the best possible deal for Canadian workers and the Canadian industry,” Champagne said. “We have, compared to many countries that are negotiating with the United States, already a trade agreement in place.”