IDFA Rejects Canadian Announcement of USMCA Tariff Rate Quota Compliance; Urges USTR to Act Swiftly

WASHINGTON —The International Dairy Foods Association (IDFA), speaking on behalf of the full U.S. dairy supply chain, rejects the Government of Canada’s changes to how dairy tariff rate quotas (TRQs) are allocated under the United States-Mexico-Canada Agreement (USMCA). In December 2021, a USMCA dispute panel found Canada to be non-compliant with their dairy TRQ commitments under USMCA. Canada responded to the ruling with plans showing they were unwilling to reform their trade-distorting practices on dairy. Earlier today, Canada made good on its plan to ignore the dispute panel and published changes on how the government will allocate dairy TRQs going forward. IDFA rejects these changes and calls on the Office of the U.S. Trade Representative to hold Canada accountable for trade distorting practices that go against both the intent and the letter of the USCMA agreement.

“This outcome is completely unacceptable,” said Michael Dykes, D.V.M., president and CEO of IDFA. “Canada’s publication today clearly shows they are ignoring their trade commitments agreed to in the USMCA and refusing to administer their dairy TRQs in a manner compliant with the agreement. The U.S. dairy industry has made clear from the start that U.S. dairy exporters demand real TRQ reform that will permit the market access Canada agreed to. The U.S. met with Canada a week ago on this very matter and expected a good faith 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.”

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