The measures announced by Canada regarding tariff quotas for dairy products are inadequate, the American administration regrets, suggesting that it may take retaliatory measures.
The two countries have been fighting for months over the issuance of tariff quotas, stipulated in the USMCA free trade treaty (agreement with the United States, Mexico, Canada), a mechanism that imposes zero or low customs duty on imports. of some particular product up to a certain quantity.
Washington has criticized that most tariff quotas are given to Canadian processors, who are more inclined to import commercial quantities of cheap cheese.
The Biden administration appealed to the settlement panel under the new free trade treaty, the USMCA (United States, Mexico, Canada Agreement) which has been in effect since July 1, 2020, replacing the Free Trade Agreement. -North American Exchange (NAFTA) of 1994.
This group concluded in early January that Canada’s practice of maintaining reserves of tariff quotas for the exclusive use of milk processors was inconsistent with the USMCA.
The new rules end the use of processor -specific TRQ reservesCanadian Minister of International Trade Mary Ng said in a statement on Monday.
Canada’s unfulfilled promises
But the Biden administration does not have the same reading of these new policies.
The United States was extremely disappointed with Canada’s announcement today about its Dairy TRQ Americans, reacted to Katherine Tai, the United States Trade Representative (USTR) in a press release.
He remembered that top priority The rest is to ensure that American workers, producers, farmers and exporters are satisfied with the market access promised to them under the USMCA agreement. And I told Canada directly about it before they released the reviews todayhe added.
According to him, Canada’s promises made under the trilateral treaty are not fully realized.
We will review all optionshe added, referring to the next steps will compose the next in the next few days.
Canada’s new policies regarding the allocation and management of dairy TRQs under the USMCA follow public consultations that took place from March 2 to April 19, the official said. Canadian administration.
We are confident that the new rules are fully consistent with the panel’s findings and its recognition that Canada has full discretion to manage its tariff rate quotas under the USMCA in a manner that supports the management system. Canadian supply of dairy products.Ms. also commented. Ng.
U.S. dairy groups have called on the Biden administration to retaliate against tariffs on Canadian products, saying it is under the USMCA.
Canada has clearly chosen to handle the United States government and its obligations to the international treatyreaction by Jim Mulhern, president of the American National Federation of Dairy Farmers (NMPF).
According to him, Ottawa ignoring the USMCA agreement signed just a few years ago.
Source: Radio-Canada
