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U.S. files 2nd trade dispute over Canadian dairy policies

The U.S. Trade Representative has requested a second dispute settlement action for Canada’s restriction of dairy trade under the USMCA agreement.

Katherine Tai says the United States is challenging Canada’s dairy tariff-rate quota (TRQ) allocation measures, which deny allocation access to eligible applicants, including retailers, foodservice operators, and other types of importers.  She says Canada has also imposed new conditions on the allocation and use of the TRQs. 
 
The USTR is also challenging Canada’s failure to fully allocate its annual dairy TRQs.  Tai says Canada undermines the market access that it agreed to provide in the USMCA by parceling out a few months of quota at a time. 

Tai says she is deeply troubled by Canada’s decision to expand its dairy tariff-rate quota restrictions and says the USTR staff communicated clearly to Canada that the new policies prevent U.S. workers, producers, farmers, and exporters from getting the full benefit of the market access that Canada committed to under the USMCA.