U.S. amping up dispute with Canada over allowed exports of American dairy products

Published 2021년 5월 25일

Tridge summary

The United States has initiated a dispute with Canada over the sale of American dairy products in Canada, marking the first significant trade conflict between the two countries post-NAFTA. U.S. Trade Representative Katherine Tai has requested a dispute settlement panel to investigate allegations that Canada is denying American producers fair access to the Canadian market. The dispute stems from Canada's distribution of tariff-rate quotas for dairy products, which U.S. trade officials and the dairy industry assert is being improperly allocated to processors, denying U.S. farmers' fair share of the Canadian market. Despite ongoing discussions, the dispute remains unresolved, with the U.S. arguing that Canada's actions contradict the USMCA agreement, while Canada insists its policies are in compliance. This dispute joins the long-standing softwood lumber dispute as one of the most prominent trade disputes between the two countries.

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Original content

The United States is ramping up its dispute with Canada over the sale of American dairy products north of the border — the first significant new trade squabble between the two countries of the post-NAFTA era. U.S. Trade Representative Katherine Tai formally requested a dispute settlement panel Tuesday to examine allegations from American producers that Canada is denying them fair access to the Canadian market. The request marks a significant escalation of American complaints about the way Canada is allocating access to its supply-managed dairy market under NAFTA's successor, the U.S.-Mexico-Canada Agreement. "A top priority for the Biden-Harris administration is fully enforcing the USMCA and ensuring that it benefits American workers," Tai said in a statement. "Launching the first panel request under the agreement will ensure our dairy industry and its workers can seize new opportunities under the USMCA to market and sell U.S. products to Canadian consumers." At the heart of the ...

Source: Castanet