Canada And US Battling Over Dairy Products

May 26, 2021

Canada could soon be facing a legal challenge by the US under the new NAFTA.

Washington alleges Canada is mistreating the American dairy industry, by making it next to impossible for certain US dairy products to make it across the border. Under the USMCA, that was signed last summer, Canada has to accept certain dairy products from the US. But in a statement this week, US officials said actions being taken by Canada undermine the ability of American dairy exporters to sell a wide range of those products to Canadian consumers. As a result of failed talks, the US called for a dispute settlement panel to resolve the issue...something that Ottawa described as disappointing.

In a statement, Canada's trade minister Mary NG said under the new NAFTA, Canada agreed to provide some additional market access to the US for dairy, while successfully defending supply management. She added she was confident Canada's policies are in full compliance with the USMCA. A spokesman for President Joe Biden said a top priority for the administration is to fully enforce the new agreement and ensure it benefits American workers. Canada's dairy industry was forced to give up more than 3 percent market share in order to secure the new NAFTA. The federal government is promising to compensate dairy producers, billions of dollars in the coming years, for the loss of that market share.

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