United States Trade Representative Ambassador Katherine Tai has initiated a dispute settlement panel as a response to intransigence by Canada over their dairy tariff rate (TRQ) quota allocation.  U. S. objects to the revised dairy allocation that is regarded as contrary to the USMCA.

In commenting on the action, Ms. Tai stated, “With this panel request we are using our available tools to enforce our trade agreements and ensure that U. S. workers, farmers, processors and exporters receive the full benefit of the USMCA.”

In support of the action, Secretary of Agriculture, Tom Vilsack, commented, “Canada is a valued and important trading partner, but they continue to fall short of the USMCA obligations by denying U. S. dairy producers and exporters fair access to the Canadian market.

A previous dispute settlement panel ruled in favor of the U. S. on the basis that the 2021 Canadian Dairy TRQ allocation was contrary to their obligations under the USMCA.