Canada breaching trade commitments, U.S. says

Canada breaching trade commitments, U.S. says

The U.S. Trade Representative's office said on Tuesday that Canada is breaching its USMCA commitments by reserving most of the in-quota quantity in its dairy tariff-rate quotas for the exclusive use of Canadian processors under the U.S.- Mexico-Canada Agreement. President Joe Biden s administration said the quotas undermine the ability of American dairy exporters to sell products to consumers north of the border. We apologize, but this video hasn't loaded.

Click here to see other videos from our team. Try refreshing your browser, or Canada, or U.S. claim victory in dairy-quota trade dispute Canada has taken note of Canada's practice of reserving TRQ pools for the use of dairy processors, and takes its commitments and obligations under international agreements seriously, the trade and agriculture ministries said in a statement.

They said that the country has the discretion to manage its TRQ allocation policies under CUSMA in a way that supports Canada's supply-management system, using the Canadian acronym for the pact, and that it recognizes the legitimacy of Canada's supply-management system. The panel decision was handed over to the parties as a final report on December 20, USTR said. Canada now has a month from now -- 45 days from when that final report was issued -- to comply with the panel's ruling, a U.S. official said. The U.S. challenged Canada's tariff-rate quotas, or TRQs, which apply a preferential duty rate to certain quantities of imports and a different duty rate to imports above that quantity. The U.S. questioned the set-aside of a percentage of each dairy quota exclusively for Canadian processors.