The United States has filed another formal dispute over what it believes Canada has failed to meet its trade obligations to U.S. dairy farmers and producers.
It is the second time in less than two years that the United States has initiated such a dairy-led escalation, formally known as the Dispute Resolution Panel.
U.S. Trade Representative Catherine Tai said a new panel was needed because Canada so far refused to take the necessary steps to adequately address the first panel.
That commission ruled in December 2021 that Canada had actually violated a provision of the U.S.-Mexico-Canada Agreement regarding the way it allocates U.S. dairy import quotas.
U.S. trade officials and dairy industry advocates say the majority of these quotas went to processors rather than producers.
The United States says the federal government has amended its policy, but the new procedure remains “inconsistent” with the terms of the agreement, known as USMCA in the United States and CUSMA in Canada.
“The Canadian government’s modified measures have not solved the problem,” Thailand said in a statement announcing the decision. “Canada has made promises to the United States in the USMCA, and the Biden-Harris administration has ensured that those promises are kept.”
This report by the Canadian Press was first published on January 31, 2023.