News ANA MONTEIRO Bloomberg
The United States has decided to create a dispute settlement panel to examine Canada’s milk quotas, which Washington says undermines the ability of American dairy exporters to sell a wide range of products to Canadian consumers.
The United States is challenging Canada’s tariff rate quotas, or TRQs, which apply a preferential rate of duty to a certain quantity of imports and a different rate to imports greater than that quantity. Specifically, the United States questions the freezing of a percentage of each milk quota exclusively for Canadian processors, and the United States has requested a panel under the United States-Mexico-Canada agreement to review the measures, the Office of the US Trade Representative said. in a statement Tuesday.
“These measures negate the ability of US dairy farmers, workers, and exporters to use TRQs and take full advantage of the USMCA,” the USTR said. “The launch of the first panel request under the agreement will allow our dairy industry and its workers to seize new opportunities under USMCA to market and sell US products to Canadian consumers.
The US dairy industry has long pushed for greater accountability from its northern neighbor, part of the momentum to include dairy policy in the July pact that replaced the North American Free Trade Agreement. Under the USMCA, Canada has the right to maintain 14 tariff rate quotas on dairy products, including milk, cream and yogurt.