Accusing Canada of backsliding on its commitments, the United States requested consultations on Wednesday with its northern neighbor over dairy import quotas that restrict American entry to the Canadian market. U.S. commerce consultant Katherine Tai mentioned Canada has expanded its restrictions regardless of being the loser in a USMCA commerce ruling.
Consultations are step one underneath the USMCA to settle commerce disputes, however the course of can escalate if the nations can’t agree. A 3-judge panel dominated final December that Canada had manipulated its tariff-rate quotas (TRQs), by making them obtainable solely to processors, to restrict imports of U.S. dairy merchandise.
“I am deeply disappointed by Canada’s decision to expand its dairy tariff-rate quota restrictions,” mentioned Tai. Agriculture Secretary Tom Vilsack mentioned the Biden administration was “considering all options available” to take away unfair Canadian obstacles to U.S. dairy merchandise.
U.S. dairy teams applauded the request for consultations however mentioned the White House ought to act if Canada tried to evade tariff reform. The authorities “must be prepared to deploy the strongest-possible retaliatory measures envisioned under USMCA should this ‘whack-a-mole’ approach continue,” mentioned Jim Mulhern, chief government of the National Milk Producers Federation.
International commerce minister Mary Ng mentioned Canada would actively participated within the consultations, although she mentioned that “Canada has met its obligations … to ensure our TRQ system is compliant.”
On May 16, Canada put a revised dairy quota system into operation. It eradicated TRQs reserved for processors — “the sole finding” towards Canada, mentioned Ng.
In requesting consultations, the United States mentioned the new tariff system excluded retailers and meals service operators from making use of for a share of U.S. dairy imports. Canada, it mentioned, would additionally suppress imports by allocating the import quotas in tranches and by requiring candidates to be energetic throughout all 12 months of a baseline interval.
The USMCA requires that quotas be totally allotted at first of the commerce yr, mentioned the United States. It mentioned the 12-month exercise requirement would bar new companies from acquiring a share of U.S. imports.
U.S. files new challenge to Canada’s dairy quotas & More Latest News Update
U.S. files new challenge to Canada’s dairy quotas & More Live News
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U.S. files new challenge to Canada’s dairy quotas & More News Today
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