US seeks second set of dispute-end talks on Canada dairy quotas

The US is requesting dispute-settlement consultations for a second time over Canada’s dairy quotas, alleging that they’re undermining access that the nation agreed to provide American producers.

The Biden administration is challenging Canada’s dairy tariff-rate quota allocation measures, which deny access to eligible applicants including retailers, food service operators, and other types of importers, the office of the US Trade Representative said in a statement on Wednesday.

The US is also challenging Canada’s failure to fully allocate its annual dairy quotas, instead giving out a few months’ quota at a time. Through these measures, Canada undermines the market access that it agreed to provide in the US-Mexico-Canada trade agreement, or USMCA, the USTR said. If the US and Canada are unable to resolve US concerns through consultations, the US may request the establishment of a panel under the USMCA.

“We communicated clearly to Canada that its new policies are not consistent with the USMCA and prevent U.S. workers, producers, farmers, and exporters from getting the full benefit of the market access that Canada committed to under the USMCA,” USTR Katherine Tai said.

While the US won a first dispute with Canada earlier this year, the nation’s measures have moved it further away from full compliance with its USMCA obligations, USTR said.