Washington reproaches Ottawa for reserving part of its farmers’ milk for Canadian dairies, which process it, which automatically reduces the amount of milk the United States sells to it.
“This historic victory will help remove unjustified trade restrictions on US dairy products and ensure that the US dairy industry and its workers fully benefit from the T-MEC to market and sell US products to Canadian consumers,” Katherine Tai reacted in a statement. .
The panel presented its report on December 20 and, under T-MEC regulations, Canada has 45 days from that date to comply with the ruling.
The group was created last May at the request of Washington. It is the first conflict since the T-MEC replaced NAFTA on July 1, 2020.
The Canadian government says it is satisfied with certain aspects of this report and believes that it “came out largely in favor of Canada and its dairy industry.” It further indicates that it has “taken note” of the comment on quotas and states that it “will continue to work closely with the Canadian dairy industry.”
“Canada takes seriously its commitments and obligations under international agreements,” including those with the United States, “its closest trading partner,” said the Minister of International Trade, Mary Ng, and the Minister of Agriculture, Marie- Claude Bibeau.
Between January and October 2021, the United States exported dairy products worth $ 478 million to Canada, which is the third largest export destination for US dairy products, its trade representative reported.