Dairy Groups: Retaliatory Tariffs Required as Canada Refuses its USMCA Obligations

National Milk Producers Federation and the U.S. Dairy Export Council Monday called on the U.S. government to levy retaliatory tariffs on Canada. The call comes after Ottawa made clear that it refuses to meet its signed treaty obligations under the U.S.-Mexico-Canada Agreement concerning dairy market access. In January, a USMCA dispute resolution panel initiated by the U.S. found that Canada’s dairy tariff-rate quotas system violates the terms of USMCA. Canada issued a new TRQ proposal in March, which included only inconsequential changes. Monday's announcement shows no indication that Canada intends to comply with its USMCA commitments, according to the dairy groups. Jim Mulhern, president and CEO of NMPF, says, “Canada made a clear choice to thumb its nose at both the United States government and its international treaty obligations.” In April, the groups filed public comments on the matter with Global Affairs Canada. The comments noted the proposed changes “continue to fall woefully short of full compliance.”