USMCA panel sides with Canada on dairy dispute

USMCA panel sides with Canada on dairy dispute

U.S. officials say they’re very disappointed after a trade dispute panel ruled in favor of Canada regarding dairy market access.

Shawna Morris with National Milk Producers Federation and the U.S. Dairy Export Council tells Brownfield, “Frankly, we’re floored and extremely disappointed with this panel. It’s still hard to imagine how the panel concluded what they did.”

Morris says they supported a second dispute panel to get real reforms so U.S. producers would get the Canadian market access promised in the USMCA trade agreement but, “The panel has concluded that Canada apparently has a wildly free hand in how it can actually shape it’s market access committments in ways that frankly, we don’t think are consistent with the text of the agreement.”

The ruling issued by the USMCA trade dispute panel Friday allows Canada to continue to restrict its annual dairy tariff rate quotas, or TRQ’s by reserving a percentage of the quota for processors and for so-called “further processors.” 

The ruling brought immediate criticism from U.S.