Canada responds to USMCA dairy case; US government, industry displeased & More News Here

The Canadian authorities mentioned at present, May 16, it had printed new dairy tariff charge quota (TRQ) insurance policies in response to the case the United States introduced towards Canadian dairy coverage below the U.S.-Mexico-Canada Agreement, however Agriculture Secretary Tom Vilsack mentioned the announcement was “disappointing” and “inadequate,” whereas U.S. dairy industry leaders known as on the Biden administration to impose retaliatory tariffs on Canada.

Mary Ng, the Canadian minister of worldwide commerce, export promotion, small enterprise and financial improvement, mentioned that the USMCA dispute settlement panel’s report “ruled in favour of Canada in a majority of the claims,” and that the brand new insurance policies handle “the sole finding” that Canada’s observe of reserving TRQ swimming pools solely for the usage of dairy processors is inconsistent with the settlement.

“The new policies end the use of processor-specific TRQ pools,” Ng mentioned.

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She added that Canada “has the full discretion to administer its TRQs under CUSMA [the Canadian acronym for the Canada-U.S.-Mexico Agreement] in a manner that supports Canada’s supply management system for dairy.”

“We will always stand up for its dairy industry, farmers and workers and the communities they support, and at a time when global food security is under threat, it is even more important that we strengthen and maintain a strong and vibrant domestic dairy industry,” Ng added.

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In a name to reporters from Poland after assembly with G7 leaders concerning the Ukraine scenario, Vilsack mentioned he had had a “very frank and specific conversation” with Canadian Minister of Agriculture and Agri-Food Marie-Claude Bibeau to inform her “how inadequate” the response was, and that the United States was “greatly disappointed” that the brand new quotas don’t embody retailers.

Vilsack added, “There is no distance” between USDA, the Office of the U.S. Trade Representative and the U.S. dairy industry in response to the Canadian response.

But requested about U.S. dairy teams calling at present for retaliatory tariffs towards Canada, Vilsack mentioned “the first step was to convey the level of dissatisfaction.”

“I am hopeful that the nature of my conversation with the Canadian minister underscores the initial level of disappointment,” Vilsack mentioned, including that he believes Bibeau “is capable of reading between the lines about what’s next.”

International Dairy Foods Association President and CEO Michael Dykes, who represents dairy processors, mentioned at present “This outcome is completely unacceptable.”

“Canada’s publication at present clearly exhibits they’re ignoring their commerce commitments agreed to within the USMCA and refusing to administer their dairy TRQs in a fashion compliant with the settlement

“The U.S. dairy industry has made clear from the beginning that U.S. dairy exporters demand actual TRQ reform that may allow the market entry Canada agreed to. The U.S. met with Canada every week in the past on this very matter and anticipated a great religion effort.

“Instead, Canada continues to deny U.S. dairy products from reaching their full capacity under the terms of the deal and continues to deny the existence of any obligations. IDFA thoroughly rejects the Canadian policy published today and demands a swift response from USTR,” Dykes mentioned.

The National Milk Producers Federation and the U.S. Dairy Export Council known as on the U.S. authorities to levy retaliatory tariffs on Canada.

“Canada made a clear choice to thumb its nose at both the United States government and its international treaty obligations,” mentioned NMPF President and CEO Jim Mulhern. “It has completely disregarded the USMCA agreement signed just a few short years ago.”

“Ottawa’s decision today is clearly designed to test our resolve by doubling down on its longstanding dairy trade violations, ignoring both the spirit and the letter of its trade agreements. That decision demands retaliatory action by the U.S. government. Otherwise, our trade agreements will be seen as toothless before the ink is dry,” Mulhern mentioned.

“USTR, USDA and scores of members of Congress from both side of the aisle have worked diligently to ensure American dairy farmers and manufacturers benefit from USMCA,” mentioned USDEC President and CEO Krysta Harden. “They deserve our deepest thanks for bringing us this far.”

“Unfortunately, Canada simply refuses to institute real reform, and such actions must have consequences. Retaliatory tariffs are both fair and necessary in this circumstance, as clearly provided for by USMCA,” Harden mentioned.

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