USTR Begins USMCA Dispute Panel on Dairy Trade with Canada

On Tuesday, Trade Representative Katherine Tai announced the U.S. has requested and established a dispute settlement panel under the USMCA regarding dairy trade. The request seeks to review measures adopted by Canada that “undermine the ability of American dairy exporters to sell a wide range of products to Canadian consumers.”

The U.S. is challenging Canada’s allocation of dairy tariff-rate quotas, specifically the set-aside of a percentage of each dairy TRQ exclusively for Canadian processors. Agriculture Secretary Tom Vilsack responded, “This is an important step for American agriculture and one that brings the U.S. dairy sector closer to realizing the full benefits of the USMCA.”

Vilsack added the action “puts our other agricultural trading partners on notice that they must play by the rules.”

Praising the announcement, National Milk Producers Federation President and CEO Jim Mulhern states, “Canada has failed to take the necessary action to comply with its obligations under USMCA by inappropriately restricting access to its market.”

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