Canada’s USMCA dairy provisions under scrutiny
U.S. Trade Representative Robert Lighthizer says Canada has a month left to get rid of their Class 6 and Class 7 milk price support systems.
In a House Ways and Means Committee hearing on trade Wednesday, Lighthizer testified his office is closely monitoring how Canada upholds the spirit of the USMCA.
“I think the government will do it, but there are levels of complication including industry involvement that make it very difficult. So, we will monitor the situation very closely and, if we need to, we’ll bring an action.”
The U.S. Dairy Export Council and National Milk Producers Federation are urging Lighthizer to immediately insist that Canada adheres to its commitments in the agreement. The groups say Canada’s allocation of its tariff-rate quotas (TRQ) under USMCA, released this week, undermines the intent of new dairy provisions and discourages high-value food service or retail products from entering the market.