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USMCA Panel Releases Canada Dairy Report; Biden-Harris Administration Will Continue Seeking Full USMCA Benefits for U.S. Dairy

Published by Office of the United States Trade Representative on November 24, 2023.

USTR release on the November 2023 panel: majority found Canada's revised dairy TRQ measures not inconsistent with the cited USMCA provisions; one panelist dissented.

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… In May 2022, the United States <a href="https://ustr.us7.list-manage.com/track/click?u=b58f12c4da47019d98a1e84ef&id=d14252659a&e=5048dc3a30" style="-ms-text-size-adjust:100%; -webkit-text-size-adjust:100%">requested consultations</a> with Canada to address its updated dairy TRQ allocation measures.  Following those consultations, Canada ceased its USMCA-inconsistent partial allocation of calendar year 2022 dairy TRQs, which the United States had raised in the May 2022 consultations request.  In December 2022, the United States <a href="https://ustr.us7.list-manage.com/track/click?u=b58f12c4da47019d98a1e84ef&id=6403bb4758&e=5048dc3a30" style="-ms-text-size-adjust:100%; -webkit-text-size-adjust:100%">again requested consultations</a> with Canada after identifying additional areas of concern with Canada’s dairy TRQ policies.  The United States <a href="https://ustr.us7.list-manage.com/track/click?u=b58f12c4da47019d98a1e84ef&id=7f6b6d76a6&e=5048dc3a30" style="-ms-text-size-adjust:100%; -webkit-text-size-adjust:100%">established a panel</a> in January 2023.  After receiving written submissions and meeting with the disputing parties, the USMCA panel issued its final report on November 10, 2023, and pursuant to Article 31.17.6 of the USMCA, the parties made the panel report public on November 24, 2023.    In the report, the panel found that Canada’s measures are not inconsistent with the USMCA provisions cited by the United States.  The panel split on the U.S. claims that Canada’s exclusion of retailers, food service operators, and other entities from eligibility and its historical market share approach to allocate Canada’s USMCA dairy TRQs breach Canada’s USMCA obligations.  A dissenting panelist agreed with the United States that by excluding retailers and others, Canada was breaching its commitment to make its dairy TRQs available to all applicants active in the Canadian food or agriculture sector. …

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Canada's counter-tariffs on C$27.6 billion (about US$20 billion) of U.S. goods took effect September 8 · cited for the 2023 panel majority that Canada's revised dairy measures were not inconsistent with the cited USMCA provisions

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