Canada supports dairy quotas when the United States files a second trade complaint

Canada’s Secretary of State for International Trade says it supports the position of imposing trade quotas on dairy products after the United States has filed a second formal complaint against policies under the new North American Trade Agreement.

Disputes are focused on Canada’s Tariff Quota Quota (TRQ), the quantity of certain goods that can be imported under preferential tariffs. The United States accuses Canada of allocating much of its allocation to processors and thus denying the level of access that US producers are entitled to under the Canada-Mexico-Mexico Agreement (CUSMA). bottom.

In response to US Trade Representative Katherine Tai Announcement on May 25 This is the second formal dispute resolution request filed with Canada’s TRQ, and Canada’s Trade Minister Mary Ng respects the U.S.’s right to do so, but is based on dairy allocation practices. Said.

“Canada has fulfilled its obligations under CUSMA and has confirmed that the TRQ system is compliant,” said Ng. May 25 Statement.. “We respect the United States’ right to initiate a dispute resolution mechanism as part of the agreement.”

“Canada actively participates in CUSMA’s consultation process and supports our position in managing TRQ in a way that supports dairy supply management systems.”

New US challenges have come as part of a long-standing debate over Canada’s trade restrictions aimed at protecting dairy farmers from US imports. The US trade representative said it was against the promise under CUSMA.

In her statement, Tai stated that Canada’s dairy TRQ policy “denies quota access to qualified applicants, including retailers, the food service industry, and other types of importers.” rice field. She also challenged Canada’s lack of full dairy TRQ each year, saying it “splits the quota for several months at a time.”

Thailand said it “has serious problems” with Canada’s decision to increase TRQ restrictions, weakening market access that Canada has agreed to offer under CUSMA through these measures. Stated.

“We are not in line with the USMCA in Canada’s new policy, and US workers, producers, farmers, and exporters will get the full benefit of Canada’s promised market access under the USMCA. I clearly told Canada that it was preventing me from doing so, “she said.

US Secretary of Agriculture Tom Bilsack said tariffs on Canadian dairy products were “a major concern” for US President Joe Biden’s administration.

The United States previously filed a formal trade complaint against Canada’s dairy policy under CUSMA in December 2020. It replaced the North American Free Trade Agreement (NAFTA) that year.

The International Arbitration Commission, established under the CUSMA Agreement, upheld the United States in a major ruling that year, stating that Canada’s practices were “contradictory” to the promises set out in the trade agreement.Published panel final report In January 2022, Canada was forced to revise its measures.

May 16th, Canada Final change It complies with the TRQ distribution rules for dairy products, but said the new rules would only yield the same results as the old rules and was rejected by the United States as a basis for resolving disputes between the two countries.

by Financial Post, The United States has accused Canada of booking most TRQs for domestic processors. This includes three major dairy companies that dominate the majority of the market: Saputo Inc., Agropur and Groupe Lactalis, preventing US companies from competing completely and fairly. ..

This issue remains in Canada’s new TRQ rules, the US Trade Representative Office said.

“Canada’s revised policy allows only processors, additional processors, and distributors to apply and be granted allocations, such as Canada’s retailers and food service operators. This means that we will continue to exclude other eligible applicants, “reads the May 25 statement.

The statement also stated that the Canadian dairy TRQ requires applicants to be active for all 12 months of the 12-month reference period. This may exclude some otherwise eligible applicants, especially new entrants.

Andrew Chen


Andrew Chen is a Toronto-based Epoch Times reporter.

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