Wisconsin Dairy Groups Applauding Move by Federal Government to Challenge Canada's Dairy Import System

Friday, February 3rd, 2023 -- 9:01 AM

(By Hope Kirwan, Wisconsin Public Radio) Some Wisconsin dairy groups are applauding a move by the federal government to challenge Canada's dairy import system for a second time.

According to Hope Kirwan with Wisconsin Public Radio, U.S. Trade Representative Katherine Tai announced her office has established a dispute settlement panel under the U.S.-Mexico-Canada Agreement, or USMCA.

This is the second time the United States has challenged Canada's tariff-rate quota system, which allows a certain amount of products to be imported at a lower tax rate. When USMCA was established, the system was seen as a way for U.S. producers to increase exports of milk powder, butter, cheese and other products into Canada, which limits imports in order to protect their federal dairy supply management system.

A previous dispute panel found in December 2021 that the tariff-rate quota system did not follow Canada's obligations under USMCA and Canada made changes to the policy.

But Tai said in a press release that the revised system still limits retailers, food service operators and other types of importers from buying American products at the lower tariff rate.

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