U.S. Launches Second Inquiry Into Canada's USMCA Dairy Trade Agreement

By Rick Brewer

Michigan dairy producers are praising the launch of an investigation by the U.S. Trade Representative into alleged trade violations by the Canadian dairy industry. Michigan producers say they’re being locked out of Canadian markets.

The trade agreement between the U.S., Mexico, and Canada (USMCA) establishes how much dairy can move between borders and where it can be sold.

But the U.S. Trade Representative says Canada is undermining market access that it had agreed to by not allowing U.S. dairy producers to sell products like cheese in retail stores.

"Those markets are pretty much controlled by dairy cooperatives in Canada and they're going to hold those quotas tighter then we feel they agreed to in the agreement," said Doug Chapin, President of the Michigan Milk Producers Association.

This is the second time the U.S. Trade Representative has contended that Canada is not honoring its trade agreement.

Chapin said Canada’s previous attempts to honor the agreement haven’t been sufficient for Michigan producers.