WASHINGTON — The top Republican on the House Ways and Means Committee Kevin Brady (R-TX) released the following statement after the United States Trade Representative announced that it will launch formal consultations under the new United States-Mexico-Canada Agreement (USMCA) against Canada’s implementation of the dairy tariff-rate quota:
“Amb. Lighthizer is right to use our powerful new dispute settlement system in USMCA to challenge Canada’s discrimination against American dairy products. I look forward to continuing to consult with the Administration and American stakeholders as we stand up for the rights of American producers and workers in those cases where Canada and Mexico fall short of their obligations, such as on energy, biotech, trade facilitation, regulatory issues, and digital trade.”
The improved dispute settlement mechanism that was created as part of USMCA allows the United States to hold Canada and Mexico accountable if they violate the agreement. The loopholes in the NAFTA mechanism permitted any country to block dispute settlement.