USMCA Dairy Ruling

USMCA Dairy Ruling

Kelly Allen
Kelly Allen
U.S. dairy farmers could have better market access in Canada following a dispute settlement win under USMCA.

National Milk Producers Federation’s Tony Rice says the decision will push Canada to widen the market.

“What this ruling does is it compels Canada and requires them to change and modify their current TRQs to come into closer alignment to what the actual language of the USMCA.”

Rice says Canada’s first step is to open its Tariff Rate Quotas so American producers have a wider range of access.

“That access should be extended to distributers, retailers, food service, restaurants, essentially a whole slate of individuals who are looking to import, because Canadian consumers are willing to import American products.”

Canada has until February 3rd to submit modifications to the USTR. If those modifications line up with the USMCA trade deal guidelines, Rice says producers could see improvement in market access by summertime.

If the U.S. rejects the Canadian modifications, Rice says the issue will be moved back into panel negotiations.

From January through October 2021, the United States exported $478 million of dairy products to Canada, which is the third largest export destination for U.S. dairy products.

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