Ng says panel rules ‘clearly in favour of Canada’ in dairy imports dispute with U.S. | CityNews Calgary

Business
Published 25.11.2023
Ng says panel rules ‘clearly in favour of Canada’ in dairy imports dispute with U.S. | CityNews Calgary

The federal authorities is cheering an enormous win in its ongoing dispute with the U.S. over entry to Canada’s dairy market.

A settlement panel has rejected complaints from the U.S. Trade Representative’s workplace over how Canada is allocating its dairy import quotas.

It’s the second dispute decision panel in three years to discover U.S. complaints that Canada is unfairly favouring processors over producers.

The findings of the primary one, launched in December 2021, had been largely in favour of the U.S., though Ottawa nonetheless tried to border it as a victory.

U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack say they’re upset within the consequence however intend to maintain urgent Canada on its commerce obligations.

International Trade Minister Mary Ng, in the meantime, is framing the most recent findings as vindication for Canada’s method to dairy import quotas.

“Canada is very pleased with the dispute settlement panel’s findings, with all outcomes clearly in favour of Canada,” Ng mentioned in an announcement.

“This is good news for Canada’s dairy industry and our system of supply management.”

Supply administration, she mentioned, offers stability to the market and helps producers with “fair returns” for his or her investments. “The government of Canada will also continue to work with processors and retailers to stabilize food prices,” she added.

Ottawa says Canada’s dairy sector generated $8.2 billion in farm money receipts and $17.4 billion in gross sales final 12 months, supporting greater than 70,000 manufacturing and processing jobs throughout the nation.

The conflict revolves round how Canada allocates its dairy tariff charge quotas, or TRQs — the portions of sure dairy merchandise that may enter Canada at decrease responsibility ranges below the phrases of the U.S.-Mexico-Canada Agreement.

“Despite the conclusions of this report, the United States continues to have serious concerns about how Canada is implementing the dairy market access commitments,” Tai mentioned.

“Canada’s revised policies have still not fixed the problem for U.S dairy farmers.”

Added Vilsack: “We will continue to voice deep concerns about Canada’s system. We remain focused on securing the market access we believe Canada committed to under the USMCA and we will continue exploring all avenues available to achieve that goal.”

The first dispute settlement panel, launched in May 2021, largely agreed with the U.S. criticism that Canada’s technique was a violation of the phrases of the settlement, recognized north of the border as CUSMA.

Tai’s workplace felt compelled to hunt a second panel after the primary one modified little.

“Canada made commitments to the United States in the USMCA,” Tai mentioned on the time, “and the Biden-Harris administration is ensuring that they honour those commitments.”

Disputes and disagreements have turn into a recurring characteristic of the USMCA because it turned the regulation of the land in the summertime of 2020.

Canada and the U.S. are collectively taking Mexico to activity for power insurance policies they are saying unfairly favour home suppliers and threaten to undermine American efforts to jump-start the inexperienced power trade and fight local weather change.

And Canada and Mexico collectively claimed a major victory in January, when a separate panel dominated in opposition to the U.S. interpretation of the foundations that decide whether or not core automotive components are thought-about to be of home or overseas origin.

The U.S. has been silent on whether or not it intends to adjust to that call.

This report by The Canadian Press was first printed Nov. 24, 2023.

The Canadian Press