USTR taking action on Canadian dairy

The U.S. Trade Representative has started the first step of the dispute process with Canada under the U.S. Mexico Canada agreement for how it has implemented its dairy quotas.

Robert Lighthizer says the U.S. is challenging Canada’s allocation of dairy tariff-rate quotas (TRQs) which he says undermined the ability of American dairy farmers to utilize the agreed-upon quotas and sell a wide range of dairy products to Canadian consumers.   

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation are applauding the action, saying only when Canada is held fully accountable to its trade commitments will America’s dairy farmers be able to realize the full benefit of the provisions.

Dairy groups and lawmakers had been pressing the Trade Rep to take action against Canada after the country in June announced their quotas which reserved a percentage exclusively for processors.

If the United States and Canada are not able to resolve the United States’ concerns through consultations, the U.S. may request the establishment of a USMCA dispute settlement panel to examine the matter.

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