Dairy Leaders Praise USTR Action on Canadian Quota Enforcement
The U.S. Trade Representative on Wednesday announced they will initiate official consultations with Canada to examine the country’s Tariff Rate Quota (TRQ) obligations. Dairy leaders, including those at the U.S. Dairy Export Council (USDEC), the National Milk Producers Federation (NMPF) and the International Dairy Foods Association, praised the move.
“IDFA commends the U.S. government for pursuing accountability and for standing firm on Canada’s obligations under USMCA. This step by USTR shows they are dedicated to ensuring all parties to USMCA honor their commitments and obligations,” said Michael Dykes, D.V.M., president and CEO of IDFA in a statement.
The dairy industry has long raised concerns about the need to ensure the United States-Mexico-Canada Agreement (USMCA) is fully enforced.
“USMCA is designed to improve trade with Canada, while modifying some of Canada’s trade-distorting dairy policies. We knew from day one that enforcement would be key to bringing the intended benefits home to America’s dairy industry. I applaud USTR for hearing our concerns and relying on our guidance to take this critical enforcement step to ensure that the agreement is executed in both letter and spirit,” said Tom Vilsack, president and CEO of USDEC in a statement. “This is the critical first step, but more work may be needed to ensure Canada complies with its Class 7 related USMCA commitments as well.”
USDEC and NMPF have monitored Canada’s actions regarding its USMCA commitments for months and urged Congress and the administration to make this a priority as soon as USMCA entered into force. Canada has distorted its TRQ administration to limit imports from the U.S. Additionally, earlier this year, USDEC and NMPF highlighted for USTR and USDA the inconsistencies between Canada’s dairy TRQ allocations and Canada’s USMCA obligations.
“America’s dairy farmers appreciate USTR’s commitment to the fair and transparent enforcement of USMCA. Enforcement has been one of the top priorities of our industry since the final agreement was announced, and we’ve worked diligently to ensure that it remains one of USTR’s top priorities, as well. Only when Canada is held fully accountable to its trade commitments will America’s dairy farmers be able to realize the full benefit of the provisions that the U.S. government worked so hard to secure,” said Jim Mulhern, president and CEO of NMPF in a statement. “We look forward to working closely with the incoming administration as well since enforcement efforts are likely to require sustained focus going forward.”
