U.S. Trade Representative Katherine Tai Tuesday announced the second dispute settlement panel under the U.S.-Mexico-Canada Agreement regarding Canada’s dairy tariff-rate quota allocation measures.
The United States is challenging Canada’s revised dairy TRQ allocation measures that use a market-share approach for determining TRQ allocations. Through these measures, Canada undermines the market access it agreed to provide in the USMCA, according to USTR.
Ambassador Tai says, “Although the United States won a previous USMCA dispute on Canada’s dairy TRQ allocation policies, the Canadian government’s revised measures have not fixed the problem.”
National Milk Producers Federation president and CEO Jim Mulhern responded, “USTR’s action is an important step in righting this wrong and sending a message that the U.S. will fight violations of trade deals in Canada and wherever else they may be committed.”
If the panel confirms that Canada has violated its obligations under USMCA, the U.S. would be granted the right to impose retaliatory duties.