The U.S. Trade Representative (USTR) informed Canada on Monday it will file enforcement action over its rules for U.S. dairy imports.
Canada said it is fully within its rights to apply tariff-rate quotas (TRQs), which follow the rules laid out in the U.S.-Mexico-Canada (USMCA) trade pact that went into effect in July.
“Canada's administration of its dairy TRQs is in full compliance with its commitments under the new NAFTA,” Youmy Han, spokesperson for Canada's Trade Minister Mary Ng, said. “Our government will always stand up for our dairy farmers and a strong supply management system in Canada, which ensures the viability of our family farms and the vitality of our rural areas.”
Canada has 15 days to engage regarding any complaints about perishable items, such as milk, and 30 days to respond for other products. If the countries fail to reach a deal through consultations, the complainant can request the creation of a dispute settlement panel to examine the issue.
USTR had yet to formally confirm the actions as of late Tuesday, but responses from the Canadian government indicate the process must be getting underway.
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