U.S. Will Take Enforcement Action to Ensure Canada Follows Trade Agreement

Thursday, May 27th, 2021 -- 9:01 AM

(Wisconsin Ag Connection) U.S. Trade Representative Katherine Tai announced that the United States will take enforcement action to ensure Canada meets its commitments under the U.S. Mexico-Canada Agreement, specifically when it comes to dairy trade.

According to the Wisconsin Ag Connection, groups like the U.S. Dairy Export Council and National Milk Producers Federation have been calling for full enforcement of Canada's trade obligations given its ongoing refusal to change how it handles dairy market access under USMCA.

Initiating an official dispute settlement will establish a panel to determine whether Canada has been violating its trade obligations. If the panel determines a lack of compliance, the U.S. would then be granted the right to impose retaliatory duties if Canada fails to fix its problematic TRQ administrative practices.

Under the previous administration, USTR took an initial enforcement step in December by seeking consultations, which did not resolve the issue. In the new action, USTR asked for the establishment of a dispute settlement panel, which is expected to issue a report later this year.

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