Politicians Express Dismay on Canadian Dairy Panel Loss
Prominent members of the House of Representatives objected to a USMCA panel ruling last week that said Canada's rewrite of its tariff rate quotas for U.S. dairy exports didn't violate the trade agreement (see 2311240002). U.S. farmers thought they would have the opportunity to sell directly to Canadian consumers, but dairy processors in Canada still control access.
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House Ways and Means Chairman Rep. Jason Smith, R-Mo., issued a statement after the panel's release: "The panel’s decision leaves in place a status quo of Canadian dairy restrictions that is simply unacceptable. American farmers deserve a level playing field, and Canada must uphold both the spirit and the letter of its obligations under USMCA. Improved agricultural market access and enhanced enforcement mechanisms were key victories achieved under the USMCA for American farmers and workers. They were some of the many reasons the agreement received overwhelming bipartisan support. I will continue working with partners and stakeholders to ensure transparent and equitable access to Canadian markets for U.S. dairy producers.”
Trade Subcommittee Chairman Adrian Smith, R-Neb., noted that an earlier panel ruling in 2022, that led to the reworking of the TRQs, was favorable to the U.S., and said: "Canada’s failure to come to the table and honor its USMCA commitments would have a lasting and negative impact on the bilateral and economic partnership between our countries. Market access is one of the most important components of our rules-based trading system, and I call on Canada to make the changes necessary to come into compliance.”
Rep. Elise Stafanik, R-N.Y., said: "Our dairy farmers in Upstate New York and the North Country work hard to provide delicious and nutritious products for our communities and deserve the market access they were promised under USMCA. This USMCA dispute panel’s decision allows the status quo to continue. This is untenable."