Canadian road sign.
June 17, 2020

U.S. Dairy Cries Foul Over Canada’s USMCA Implementation

 |  By: Jim Dickrell

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) are crying foul over the way Canada is interpreting provisions of the U.S.-Mexico-Canada (USMCA) trade agreement.

The provisions were announced June 15 and are set to go into effect July 1.

“Canada’s actions place the U.S. dairy industry at a disadvantage by discouraging utilization of the full use of the tariff-rate quotas (TRQs) and limiting the market access granted by USMCA,” says Tom Vilsack, USDEC president and CEO.

Vilsack says Canada announced the distribution of TRQs in such a way that discourages high-value food service or retail products from entering the Canadian market. Most of these TRQs have been allocated to competitors who have no incentive to export the products to Canada.

“Canada has chosen once again to manipulate its access commitments in order to protect its tightly controlled dairy market,” says Jim Mulhern, NMPF president and CEO.

“The US Trade Representative should act quickly to ensure Canada is held strictly responsible for abiding by the intent of the USMCA to promote fairer trade between our nations,” he says.