U.S. Amping up Dispute With Canada Over Allowed Exports of American Dairy Products

U.S. Amping up Dispute With Canada Over Allowed Exports of American Dairy Products
Dairy cows feed in a barn on a farm in Eastern Ontario on April 19, 2017. Sean Kilpatrick/The Canadian Press
The Canadian Press
Updated:

WASHINGTON—The United States is escalating its dispute with Canada over the sale of American dairy products north of the border.

The U.S. Trade Representative’s office says it wants a dispute settlement panel to examine whether Canada is unfairly keeping American producers from accessing the Canadian market.

The request is a significant ramp-up of American complaints about the way Canada is allocating access to the market under the U.S.-Mexico-Canada Agreement.

The U.S. is upset with how Canada is distributing its tariff-rate quotas—the quantities of certain dairy products that can be imported at lower duty levels.

The USTR says a large share of those quotas have been allocated to processors rather than producers, effectively denying U.S. farmers their fair share of the supply-managed Canadian market.

Canadian officials, however, insist that the allocations are perfectly in keeping with its commitments under the trade agreement, which took effect last July.