US Formally Initiates New Round of Dispute Consultations Over Canadian Dairy TRQs
U.S. Trade Representative Katherine Tai said the U.S. is requesting new dispute settlement consultations with Canada over its tariff-rate quota allocations, because as it has talked with Canada over the last seven months, "U.S. concerns have only increased."
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Tai said Dec. 20 that Canada fails to allow importers to use all the TRQs by prohibiting retailers and restaurants from accessing the allocations.
“Rather than work toward meeting its obligations, Canada persists in implementing new dairy policies that are inconsistent with the USMCA, and which continue to deny U.S. workers, farmers, producers, and exporters the full benefits of market access they were initially promised," she said. "We remain steadfast in our commitment to use all tools available to enforce our trade agreements and ensure that our dairy industry can offer a wide range of high-quality American products to Canadian customers."
Canada's trade minister, Mary Ng, denied that Canada is not living up to the USMCA terms for dairy exports. "We look forward to demonstrating how Canada is meeting its CUSMA obligations during the new consultations on allocations of dairy TRQs," she said. "As we have always done, and will continue to do, we will stand up, work with, and defend our dairy farmers and workers.”
The International Dairy Foods Association said it's good that the U.S. took this step, as it feels that the April revisions to the TRQs after a panel decision were not in compliance with USMCA. The trade group said new importers can't obtain a quota, and that Canada manipulates quota allocations to favor Canadian processors, in addition to preventing restaurants and retailers from importing under TRQs.
The trade group said it expects another panel will have to be formed "based on Canada’s history of continually rejecting U.S. concerns."