USTR Asks for Consultations Over Canada's Dairy TRQ Changes
The U.S. asked for formal dispute consultations with Canada, as it believes that the federal notice that Canada issued about changes in how it administers dairy tariff rate quotas do not comply with the dispute panel's criticisms.
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“I am deeply troubled by Canada’s decision to expand its dairy tariff-rate quota restrictions,” U.S. Trade Representative Katherine Tai said. “We communicated clearly to Canada that its new policies are not consistent with the USMCA and prevent U.S. workers, producers, farmers, and exporters from getting the full benefit of the market access that Canada committed to under the USMCA. We will continue to work with USDA to ensure that our dairy industry can bring a wide range of high-quality American products to Canadian customers.”
She said that the TRQ does not allow retailers or restaurants to import American products, and also imposes new conditions on how TRQs are allocated and used. She said parceling out the quota multiple times a year also undermines market access. The International Dairy Foods Association thanked the Biden administration for its aggressive action in the dispute.
Canada's trade minister, Mary Ng, responded that it will participate in consultations, but it believes it has met its obligations under the trade deal. "Canada will ... stand by our position to administer our TRQs in a manner that supports our dairy supply management system," she said.