In a letter to Ambassador Katherine Tai, the U.S. Senators Debbie Stabenow (D-Mich.), chairwoman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, and John Boozman (R-Ark.), ranking member recently urged the Office of the United States Trade Representative (USTR) to hold Canada accountable to its obligation to provide market access to American dairy farmers under the U.S.-Mexico-Canada Agreement (USMCA).
Despite numerous rounds of consultation and an initial dispute settlement panel ruling in January 2022, Canada continues to reserve parts of its tariff-rate quota allocations (TRQs) for domestic processors, undermining importers’ market access. The USMCA requires Canada to provide sufficient market access for dairy products and maintain an adequate level of TRQs.
The senators write: “There has been no improvement in Canada’s TRQ administration despite the USTR’s continued engagement. To bring Canada into compliance with its commitments to U.S. dairy producers, we urge USTR to move forward with a second dispute settlement case to implement USMCA’s dairy provisions fully and properly to increase U.S. dairy market access.”
The letter in its entirety can be read here.
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