Domestic Dairy Slams Canadian TRQ Rewrite
A new Canadian approach to dairy tariff rate quotas, which still sharply limits the retail sale of imports, drew fire from three U.S. dairy trade groups.
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The National Milk Producers Federation, reacting to a Canada's TRQs published late March 2, wrote, "Enough is enough. U.S. dairy producers are sick and tired of Canada’s game playing on dairy market access. All that American dairy farmers want is fair and good-faith implementation of USMCA’s dairy provisions. That doesn’t seem like a high bar, yet it appears to be insurmountable for Canada based on yesterday’s proposed dairy TRQ scheme changes."
The U.S. Dairy Export Council said Canada is trying to see just how little they can shift the TRQs. The International Dairy Food Association called the proposal a nonstarter, said it made minimal changes, and dislikes how the allocations would be made on current market share.
The Canadian proposal was posted as part of a public consultation process. A Canadian embassy spokesperson said, "As per USMCA transparency and engagement provisions, Canada is now conducting public consultations on its proposed TRQ policy revisions. We expect to continue discussions with the U.S. on Canada’s proposed approach throughout the consultations process as we move to bring ourselves into compliance with the Panel’s ruling."
The Office of the U.S. Trade Representative said it didn't give this plan its blessing. Spokesman Adam Hodge said, “The USMCA makes clear that the Parties must try resolve a dispute after a panel report. The United States has not agreed to a resolution with Canada, but we continue to talk about implementation of the panel’s findings and hope to reach a resolution.”
If the two countries cannot agree, the U.S. has the right to raise tariffs on Canadian exports proportionate to the gap between the market access its dairy producers were promised and how many sales they could have under these TRQs.