The Trump administration announced Wednesday that it was filing a challenge to measures that Canada uses to protect its dairy market, the first enforcement action taken under a new trade agreement that the countries agreed to last year.
The Office of the United States Trade Representative said it was challenging Canada’s system of barriers to keep foreign products from flooding the market, which the United States said has undermined the ability of American dairy farmers to sell their goods into Canada.
The United States-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement this year, offers governments the ability to bring trade disputes if they believe others aren’t following the rules. Under the terms of the agreement, the United States and Canada will now enter consultations, and if the issue isn’t resolved the United States can request a special panel be formed to examine the matter.
The Trump administration has touted its agreement with Canada as a win for American dairy farmers, who had previously been excluded from exporting some goods to that country given Canada’s longstanding policy of managing its dairy supply with production quotas and high levies. In rewriting the trade agreement, the U.S. insisted on gaining access for American cheese, milk and other dairy products.
“Canada’s measures violate its commitments and harm U.S. dairy farmers and producers,” Robert E. Lighthizer, the United States trade representative, said in a statement. “We are disappointed that Canada’s policies have made this first-ever enforcement action under the U.S.M.C.A. necessary to ensure compliance with the agreement.”
In August, American officials announced new tariffs on Canadian aluminum, citing a surge in metal imports. But the U.S. lifted them following consultations with Canada.
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U.S. says it will bring first dispute under new trade agreement with Canada, over milk. - The New York Times
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