An international panel will hear renewed U.S. complaints that Canada is blocking dairy imports, said the Biden administration on Tuesday. The two nations held fruitless consultations in mid-January, so U.S. trade representative Katherine Tai demanded a ruling from a dispute resolution panel — a request that is granted automatically under the U.S.-Mexico-Canada free trade agreement.
“Canada made commitments to the United States in the USMCA, and the Biden-Harris administration is ensuring that they honor those commitments,” said Tai in a statement. The United States won a 2020 challenge against Canada’s dairy quotas and has said repeatedly that Canada has failed to comply with the ruling. As an example, Tai’s office says Canada’s latest set of regulations effectively prohibit retailers, food service operators and other types of importers from the chance to buy U.S. dairy products.
Trade minister Mary Ng said Canada would defend its dairy supply management system, which controls imports. “We will stand firm against attempts to renegotiate agreements during the dispute settlement panel process,” she said.
A ruling is expected in several months. A month is allowed for selection of members of the dispute panel. U.S. dairy groups and dairy processors applauded the U.S. challenge.