The United States has released its 2026 report on foreign trade barriers, highlighting a series of concerns about Canadian policies as both countries prepare for critical United States-Mexico-Canada Agreement (USMCA) renewal talks this summer. Here are the top 10 trade irritants, as compiled by CTV News, from the United States Trade Representative’s report for 2026.
1. American liquor:
The U.S. says most provinces — except Alberta and Saskatchewan — stopped selling American liquor in government run stores, bars and restaurants in 2025. Washington says it continues to raise “serious concerns,” and is pressing Canada to ensure U.S. alcohol products “immediately and permanently” return to all provincial and territorial markets.
2. Dairy, poultry, eggs, chicken, and turkey:
The report says U.S. access to the Canadian market continues to be “severely” restricted by supply management. It cites “very high over quota tariffs,” and argues the system limits U.S. producers, while increasing prices for Canadian consumers.
3. The composition of cheese:
U.S. officials argue that Canada’s standards, limit the amount of dry milk protein products allowed in cheese production. The report says as a result, the limit reduces demand for U.S. dry milk protein.
4. Buy Canadian procurement policies:
According to the report, Ontario, Quebec, and British Columbia have adopted procurement rules that effectively exclude U.S. firms from bidding and discriminating against American suppliers.
5. The Digital Services Tax:
Washington says Canada committed to rescind the digital services tax and refund money collected to date. As of the end of 2025, the tax had not been repealed, according to the report.
6. Delays in eliminating ‘Class 7’ milk:
U.S. officials say Canada’s milk class pricing and dairy export controls, continue to favour Canadian producers and disadvantage American farmers. The report raises “continued concerns” about how quickly Canada is implementing its USMCA obligations on Class 7.
7. Zero plastic waste agenda:
The U.S. argues Canada’s plan to achieve zero plastic waste by 2030 could create trade barriers, compromise food safety, increase food waste and restrict U.S. agricultural exports because viable packaging alternatives do not yet exist.
8. Restrictions on U.S. seed exports:
The report notes Canada’s Seeds Act, bars the sale of any seed not registered with the Canadian Food Inspection Agency. It says the registration process is “slow and cumbersome,” disadvantaging U.S. seed and grain producers.
9. The Online Streaming Act:
The U.S. says American tech companies face a new tax to support Canada’s broadcasting system and warns the regulations may “effectively exclude” Canadian streaming services from paying the same amount.
10. Quebec’s Bill 109:
The report highlights Quebec’s new requirement that streaming services and device manufacturers promote French language content. The U.S. says it will “closely monitor” implementation and any potential implications for the USMCA.
