Tariff quotas for dairy products | Canada’s actions could be subject to US retaliation

(Washington) The measures announced by Canada concerning the tariff quotas for dairy products are insufficient, deplored Monday evening the American administration, suggesting that it could take retaliatory measures.

Posted at 11:07 p.m.

Washington criticizes Ottawa for reserving part of the milk of Canadian breeders for Canadian dairies, which process it, thus automatically reducing the quantity of milk sold to them by the United States.

The Biden administration had appealed to the special settlement group under the new free trade treaty, CUSMA (Canada, United States, Mexico agreement).

He concluded in early January that Canada’s practice of keeping reserves of tariff quotas for the exclusive use of dairy processors was inconsistent with CUSMA.

“The new policies end the use of processor-specific tariff quota reserves,” Canadian International Trade Minister Mary Ng said in a statement Monday.

But the Biden administration does not have the same reading of these new policies.

“The United States is deeply disappointed by the announcement made today by Canada regarding its tariff quotas for dairy products,” reacted Katherine Tai, the United States Trade Representative (USTR) in a press release.

She reiterated that “the top priority” remained to ensure that American workers, producers, farmers and exporters benefit from the market access they have been promised under the USMCA agreement. “And I told Canada directly about it before they released today’s advisories,” she added.

According to her, Canada’s promises made under the trilateral treaty are not “fully realized”.

“We will evaluate all options,” she added, adding that the “next steps” to follow will be worked out “in the coming days”.

Canada’s new policies regarding the allocation and administration of dairy TRQs under the USMCA follow public consultations that took place from March 2 to April 19, the official said. Canadian administration.

“We are satisfied that the new policies are fully consistent with the panel’s findings and its recognition that Canada has full discretion to administer its tariff rate quotas under the USMCA in a manner that supports the Canada’s supply management system for dairy products,” also commented Mr.me Ng.


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