Today, a USMCA panel agreed with the United States that Canada is breaching its commitments under the United States-Mexico-Canada Agreement (USMCA) by administering dairy tariff-rate quotas unfairly in a way that harms American dairy producers. This is the first dispute settlement panel proceeding under USMCA.
Republican Leader on the House Ways and Means Committee Rep. Kevin Brady (R-TX) released the following statement:
“I commend USTR for using USMCA’s powerful new enforcement mechanism to achieve this important result.
“Canada must now do the right thing and come into full compliance with its obligations on dairy.
“The Biden Administration must build on this success by standing up for the rights of American farmers, workers, families, and businesses with respect to all aspects of USMCA, including addressing a range of concerning issues in Mexico that are negatively affecting our American farmers and energy producers.”
In December 2020, the United States launched formal consultations, the first step in addressing U.S. concerns that Canada’s implementation of its dairy tariff-rate quotas discriminate against American dairy products. In May 2021, the United States formally requested establishment of a dispute settlement panel in this dispute.