Some dairy groups in the US are happy after the US advanced the first USMCA dispute panel on dairy, while others are still pressing for the dispute to be dropped.
Ambassador Katherine Tai said the US has requested and established a dispute settlement panel under the United States-Mexico-Canada Agreement (USMCA) to review measures adopted by the Government of Canada that it said undermine the ability of American dairy exporters to sell a wide range of products to Canadian consumers.
The US is challenging Canada’s allocation of dairy tariff-rate quotas (TRQs), specifically the set-aside of a percentage of each dairy TRQ exclusively for Canadian processors. These measures, according to the US, deny the ability of US dairy farmers, workers, and exporters to utilize the TRQs and realize the full benefit of the USMCA.