The United States has requested and established a dispute settlement panel to evaluate measures regarding Canada’s administration of its dairy tariff fee quota (TRQs) insurance policies, below the brand new commerce settlement USMCA/CUSMA.
The U.S. is difficult Canada’s allocation of dairy TRQs — particularly the set-aside of a share of every dairy TRQ solely for Canadian processors. The nation is saying these measures deny the power of U.S. dairy farmers, employees, and exporters to make the most of the TRQs and notice the complete advantage of the USMCA.
Mary Ng, Canada’s Minister of Small Enterprise, Export Promotion and Worldwide Commerce, says that Canada if assured that its insurance policies are in full compliance with the USMCA TRQ obligations.
“Canada is a strong proponent of rules-based multilateral trade and believes that international trade will play an important role in the global recovery from COVID-19,” says Minister Ng. “We take our obligations under international agreements seriously. This includes those under USMCA with the United States, our closest trading partner. We are confident that our policies are in full compliance with our USMCA TRQ obligations, and we will vigorously defend our position during the dispute settlement process.”
The U.S. requested consultations with Canada on December 9, 2020. The Events held consultations on December 21, 2020, however didn’t resolve the dispute. That is the first panel request ever filed below Chapter 31 (Dispute Settlement) of the USMCA.
The dispute settlement course of may take as much as 8 months to conclude, on this case, as much as December 2021.