WASHINGTON – United States Trade Representative Katherine Tai today announced that the United States prevailed in the first dispute settlement panel proceeding ever brought under the United States-Mexico-Canada Agreement (USMCA). A USMCA panel agreed with the United States that Canada is breaching its USMCA commitments by reserving most of the in-quota quantity in its dairy tariff-rate quotas (TRQs) for the exclusive use of Canadian processors.
Here is what they are saying about today’s announcement:
Wall Street Journal: U.S. Prevails Over Canada in Dairy Dispute
“The U.S. prevailed over Canada in a long-running dispute over Canadian policies aimed at shielding its dairy industry from American competition, according to a ruling published Tuesday from the first dispute resolution panel under the new U.S.-Mexico-Canada Agreement. The USMCA panel ruled that Canada’s policies violated its obligations under the trade deal between the three countries, which was agreed upon in 2018 and took effect in 2020. Canada has until Feb. 3 to bring its policies into compliance, or else face possible tariffs or other countermeasures from the U.S.” [01/04/22]
Politico: U.S. claims victory over Canada in closely watched dairy trade dispute
“Ottawa violated the terms of the U.S.-Mexico-Canada Agreement by giving its own dairy industry preferential treatment under the trilateral trade pact, a
dispute panel said. The decision, which was made public on Tuesday, notches another enforcement win for the Biden administration since the Trump-era agreement took effect in July 2020. U.S. trade and labor officials have previously settled two labor complaints against factories in Mexico.” [01/04/22]
Reuters: Canada violated USMCA trade pact by reserving dairy quotas - dispute panel