WASHINGTON - Today, U.S. Trade Representative Katherine Tai initiated a second U.S.-Mexico-Canada Agreement (USMCA) Dispute Panel on Canadian dairy tariff-rate quota (TRQ) policies. This is the second dispute the U.S. has brought under the USMCA concerning Canada’s failure to meet their obligations to the U.S. dairy industry, and follows the ongoing efforts of Rep. Valadao and his colleagues to ensure fair treatment of the U.S. dairy industry.  

“Our trade agreements only work if they are enforced, and Canada continues to fail to meet its obligations to the U.S. dairy industry that were negotiated to benefit America and Canada alike,” said Congressman Valadao. “I am glad to see Ambassador Tai and the Biden Administration move forward with this dispute to hold Canada accountable and ensure full compliance with the USMCA. I will continue working to protect fair market access for dairy farmers and manufacturers here in the Central Valley.”

In January, a USMCA panel ruled in favor of the United States and found that Canada was breaching its commitments by reserving most of its dairy TRQs for the exclusive use of Canadian processors. In May, Canada published a revised USMCA dairy TRQ approach, which essentially preserved the status quo and failed to make meaningful reforms.

Congressman Valadao has led several efforts to ensure the USMCA is enforced:

• In May 2021, Congressman Valadao joined several colleagues to urge U.S. Trade Representative Ambassador Katherine Tai and U.S. Secretary of Agriculture Tom Vilsack to take immediate action to enforce Canada’s commitments to the U.S. dairy industry.
• Congressman Valadao applauded the first USMCA Panel’s findings that Canada was in breach of its obligations to the U.S. dairy industry.
• In April 2022, Congressman Valadao and his colleagues sent a letter to U.S. Trade Representative Ambassador Tai and U.S. Secretary of Agriculture Vilsack requesting full enforcement of the USMCA.

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