USMCA initiates trade dispute process against Canadian dairy quotas • Farm Policy News


Wall Street Journal writer Josh Zumbrun reported on Tuesday that “Biden administration launched protest process against Canadian dairy industry, triggering for the first time the formal dispute settlement mechanism of the new US-Mexico-Canada agreement.

“The American dairy industry has long complained about policies in Canada that prevent sales in their market, and the question won the the support of many members of Congress which represent the main milk producing states. The protection of Canada’s dairy products has been a major sticking point in the USMCA negotiations that were agreed to in 2018, and the US dispute amounts to a formal accusation that Canada is not respecting the terms of the agreement.

“The launch of the first panel request under the agreement will ensure that our dairy industry and its workers can seize new opportunities under the USMCA to market and sell American products to Canadian consumers,” he said. declared Katherine tai, U.S. Trade Representative and Chief Trade Advisor to President Biden, Tuesday. “

United States Agricultural Export Yearbook 2020. USDA- Foreign Agricultural Service (April 5, 2021).

The Journal article noted that,

The United States claims that Canada has used a complex system of tariff rate quotas that reserves a share of the dairy market exclusively for Canadian dairy processors, and that the system violates what Canada agreed in 2018.

“The complaint predates the Biden administration – in December 2020, the Trump administration filed the initial complaint, and the United States and Canada discussed the complaint in December, but failed to resolve the problem.

“The United States is now escalate the dispute by requesting the establishment of a dispute settlement panel. The panel would hold hearings understand the problem and publish a report Later this year. Yes the United States wins, then Canada should bring its practices into compliance. If they does not have, the United States would eventually be able to impose tariffs. “

Also this week, Bloomberg writer Ana Monteiro reported that “the United States has decided to set up a dispute settlement panel to review Canada’s milk quotas, which Washington says undermines the ability of US dairy exporters to sell a wide variety of products to Canadian consumers.

“The United States is challenge Canada’s tariff rate quotas, or tariff quotas, which apply a preferential rate of duty to a certain quantity of imports and a different rate to imports above that quantity. Specifically, the United States questions setting aside a percentage of each milk quota exclusively for Canadian processors, and the United States has requested a panel under the US-agreement. Mexico-Canada to review the measures, the US trade representative’s office said. in a press release Tuesday.

The Bloomberg article noted that “Canada’s Minister of Trade Marie Ng says the nation is’disappointed‘with the United States’ request for a dispute settlement panel. “

United States Agricultural Export Yearbook 2020. USDA- Foreign Agricultural Service (April 5, 2021).

The Bloomberg article adds that “Canada’s dairy industry has said its quotas are in line with the trade deal and the government has a strong case to present to the panel,” said Pierre Lampron, President of Dairy Farmers of Canada.


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