American dairy groups back formal challenge to Canada TRQs
The Washington State Dairy Federation is one of several ag organizations rejecting Canada’s handling of tariff rate quotas under the USMCA Agreement. Here is an update on the action being taken by the U.S. Trade Rep.
American groups are backing the formal challenge set forward by U.S. Trade Representative saying that Canada is undermining market access that it agreed to provide in the agreement. This is the second dispute the U.S. has brought under the USMCA over Canada’s distribution of its tariff rate quotas.
Dan Woods, the Executive Director of the Washington State Dairy Federation, says, “Canada, with regard to dairy, hasn’t really been abiding by it. And so, they need to keep to that trade agreement in terms of allowing milk produced outside of Canada to come in from the other countries.”
In the event the U.S. and Canada cannot resolve the dispute, the United States may request the establishment of a panel under USMCA.
Woods thinks that Canada will ultimately be penalized for its non-compliance if changes are not made.
“We’re not going to war with Canada over them keeping U.S. milk out of their country,” he states. “Ultimately, if they refuse to abide by a trade agreement, I guess the result probably is they lose markets for other products.”