On January 31, the United States announced the establishment of a dispute settlement committee to counter Canada’s dairy import policies, which Washington said undermined the US’s ability to access the Canadian market. as Ottawa committed in the US-Mexico-Canada Trade Agreement (USMCA).
Canada’s policies regarding the import of dairy products have largely restricted U.S. dairy exports—including milk, butter, yogurt, and ice cream—to Canadian processors under a single system. called tariff quota (TRQ). TRQ applies level Preferential tax for a certain volume or quota of products and impose a higher duty on the quantity of the product in excess of the above.
According to US officials, TRQ has restricted US dairy producers’ access to the Canadian market, despite previous efforts to align its policies with Ottawa’s commitments. out in the USMCA.
U.S. Trade Representative Katherine Tai stated: “Although the United States won a previous dispute over Canada’s tariff quota allocation policies on dairy products, the revised measures of Ottawa hasn’t fixed this problem yet.”
She added that the United States is setting up a dispute settlement committee to try to enforce its trade agreements while ensuring that American workers, farmers, processors and exporters enjoy the benefits. full benefits under the USMCA framework.
[Ottawa chính thức phản đối việc Mỹ đánh thuế gỗ xẻ mềm của Canada]
The US argues that Canada’s revised measures impose new conditions that prohibit retailers, food service firms and other importers from using quota allocations.
“Through these measures, Canada undermines the market access it has agreed to provide under the USMCA,” the Office of the US Trade Representative (USTR) said in a statement.
The dispute settlement committee is expected to issue a report later this year.
On the same day, Canadian Trade Minister Mary Ng expressed disappointment at the US move.
In a statement, Mary Ng said the trade rules had been “done as intended” and that Ottawa would “continue to protect its supply management system, as well as market access without Canada and the US have agreed.”
Canada will resolutely resist efforts to renegotiate agreements during the dispute settlement process.
The United States has expressed concern regarding Canada’s tariff-quota allocation measures on imported dairy products, following a previous dispute settlement committee found the measures were inconsistent with existing laws. Canada’s obligations under the USMCA.
Washington requested consultations on the issue in May and December last year, however, following talks held this month, both sides were unable to reach a resolution on the issue. .
Minh Chau (VNA/Vietnam+)
