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Dairy groups want trade issues with Canada resolved

Nearly 70 dairy groups and associations are urging U.S. Trade Representative Katherine Tai to file a formal dispute settlement case with Canada on its dairy tariff-rate quotas if a resolution can’t be made during a trade meeting this week.

Becky Rasdall with the International Dairy Foods Association tells Brownfield it’s very clear that Canada is not following rules established in the U.S. Mexico Canada Agreement.

“The majority of Canada’s TRQ’s are allocated to Canadian dairy processors so that’s like asking a cheese producer to import cheese for further processing, they’re just not going to be incentivized to do that,” she explains.  “It’s a system that’s really built against imports.”

During a recent Senate Finance Committee hearing, U.S. Trade Representative Katherine Tai promised to uphold current agreements while using every tool available to make sure they work for the U.S.

“I will enforce the new standards, follow through on our commitments, and use the agreement to ensure that Canada and Mexico do too,” she said.

The dairy groups say action has stalled after the USTR started consultations in December 2020 with Canada to uphold its dairy provisions in the USMCA and point to bipartisan support from Congress last year as further reason to protect market access rights.

Negotiators from the U.S., Mexico, and Canada are meeting this week for the first USMCA Fair Trade Commission meeting which is intended to in part help resolve disputes between countries.