The federal government is celebrating a big victory in its ongoing dispute with the United States over access to the Canadian dairy market.
A settlement panel has rejected complaints from the Office of the U.S. Trade Representative about how Canada allocates its dairy import quotas.
This is the second dispute resolution panel in three years examining U.S. complaints that Canada unfairly favors processors over producers.
The first group’s conclusions, published in December 2021, leaned heavily in favor of the United States, although Ottawa still tried to present this as a victory.
U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack say they are disappointed with the outcome but intend to continue pressuring Canada to meet its trade obligations.
International Trade Minister Mary Ng presents the latest findings as a vindication of Canada’s approach to import quotas.
“Canada is very pleased with the findings of the dispute settlement panel, all of which are clearly in Canada’s favor,” Minister Ng said in a statement.
“This is good news for the Canadian dairy industry and for our supply management system. »
Supply management, she said, ensures market stability and supports producers by providing them with “fair income for their work and investments.”
Ottawa says Canada’s dairy sector generated $8.2 billion in farm receipts and $17.4 billion in sales last year, supporting more than 70,000 production and processing jobs across the country.
The dispute centers around how Canada allocates its dairy tariff rate quotas, or TRQs – the quantities of certain dairy products that can enter Canada at lower duty levels under the terms of the Canada-U.S. Agreement. Mexico.
“Despite the conclusions of this report, the United States continues to be seriously concerned about the way in which Canada implements its commitments regarding access to the dairy products market,” said Ms.me Tai.
“Canada’s revised policies still haven’t solved the problem for American dairy farmers. »
Secretary Vilsack added: “We will continue to express deep concerns about the Canadian system. We remain focused on ensuring the market access we believe Canada is committed to under (CUSMA) and we will continue to explore all available avenues to achieve this goal. »
The first dispute resolution panel, launched in May 2021, largely agreed with the United States’ complaint that Canada’s strategy constituted a violation of the terms of the agreement, known north of the border as CUSMA.
M’s officeme Tai felt compelled to call for a second group after the first made little difference.
“Canada has made commitments to the United States within the framework of (CUSMA),” Ms.me Tai at the time. And the Biden-Harris administration is making sure to honor these commitments. »
Disputes and disagreements have become a recurring feature of CUSMA since it became the law of the land in the summer of 2020.
Canada and the United States together blame Mexico for energy policies that they say unfairly favor domestic suppliers and threaten to undermine U.S. efforts to revive the green energy industry and combat climate change.
And Canada and Mexico together won an important victory in January, when a separate committee ruled against the U.S. interpretation of the rules that determine whether major auto parts are considered domestic or foreign.
The United States has remained silent about its intention to comply with this decision.