The Federal Minister of International Trade Mary Ng says Canada is disappointed that the United States has requested a dispute settlement panel.
“We know how important stability and certainty are to our farmers, workers and businesses. We will always work to protect their livelihoods and ensure their success at home and abroad by ensuring that trade rules are implemented as intended. Canada will continue to defend our supply management system and the market access that Canada and the United States have agreed on. We will stand firm against attempts to renegotiate agreements during the dispute settlement panel process."
The U.S. launched its second dairy-related trade complaint against Canada in less than two years saying Canada is not living up to its trade obligations in the USMCA to American dairy farmers and producers.
In 2021, a dispute panel found that Canada had violated the terms of the trade agreement with the way it was allocating import quotas for U.S. dairy products.
The U.S. says the federal government amended its policies, but that the new procedures remain ``inconsistent'' with the terms of the USMCA trade agreement in the U.S. and CUSMA in Canada.
Ng notes Canada will continue to defend our supply management system and the market access that Canada and the United States have agreed on.
The Dairy Farmers of Canada says that the Canadian government maintains that its TRQ allocation policy is consistent with the terms of the agreement.
DFC supports this view adding they will continue to work with the Canadian government through the dispute resolution process with the United States.