U.S. initiates another CUSMA dispute on Canadian dairy tariff-rate quota policies

December 23, 2022

United States Trade Representative Katherine Tai announced that the United States is requesting new dispute settlement consultations with Canada under the Canada under the Canada-United States-Mexico Agreement (CUSMA) regarding Canada's dairy tariff-rate quota (TRQ) allocation measures.

In a statement USTR Tai said: "Since initiating consultations with Canada in May 2022, the United States has identified additional aspects of Canada's measures that appear to be inconsistent with Canada's obligations under the USMCA (CUSMA), and U.S. concerns have only increased."

The United States claims that. through these measures, Canada undermines the market access that it agreed to provide in the Agreement.

Canada's Minister of International Trade, Mary Ng, issued a statement in response to the United States' request for consultations, saying that "Dispute settlement panels have confirmed that our supply management system is in line with our international trade obligations. The terms that we negotiated under the Canada-United States-Mexico agreement are being respected and upheld. We look forward to demonstrating how Canada is meeting its CUSMA obligations during the new consultations on allocations of dairy tariff rate quotas."