The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today called on the U.S. government to levy retaliatory tariffs on Canada after Ottawa made clear that it refuses to meet its signed treaty obligations under the U.S.-Mexico-Canada Agreement (USMCA) concerning dairy market access.
In January, a USMCA dispute resolution panel initiated by the U.S. found that Canada’s dairy tariff-rate quotas (TRQs) system violates the terms of USMCA. Canada issued a new TRQ proposal in March which included only inconsequential changes. Today’s announcement shows no indication that Canada intends to comply with its USMCA commitments on dairy TRQs.