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Congressman Valadao Statement on USMCA Dispute Panel’s Failure to Enforce USMCA

Washington, November 27, 2023 | Faith Mabry
Congressman David G. Valadao (CA-22) released the following statement denouncing the recent ruling by a U.S.-Mexico-Canada Agreement (USMCA) dispute panel which allows Canadian restrictions on U.S. dairy farmer’s market access to continue. This follows the ongoing efforts of Rep. Valadao and his colleagues to ensure fair treatment of the U.S. dairy industry.

WASHINGTON – Today, Congressman David G. Valadao (CA-22) released the following statement denouncing the recent ruling by a U.S.-Mexico-Canada Agreement (USMCA) dispute panel which allows Canadian restrictions on U.S. dairy farmer’s market access to continue. This follows the ongoing efforts of Rep. Valadao and his colleagues to ensure fair treatment of the U.S. dairy industry. 

“It is unacceptable that Canada is not being held accountable for its failure to meet its obligations to the U.S. dairy industry under the USMCA,” said Congressman Valadao. “Our trade agreements only work if they are enforced, and we must use every tool at our disposal to ensure Canada holds up their end of the deal. I will continue working to protect fair market access for dairy farmers and manufacturers here in the Central Valley.”

An earlier dispute panel ruled in January 2022 that Canada was in breach of its obligations to the U.S. dairy industry. Following that ruling, Canada made changes to its dairy tariff rate quota (TRQ) system which essentially preserved the status quo and failed to make meaningful reforms. To address this, U.S. Trade Representative Katherine Tai initiated a second USMCA Dispute Panel to challenge the changes Canada instituted. On Friday November 24th, the panel ruled that Canada was not obligated to make further changes to their TRQ system.

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 they reject Canada’s proposed changes and insist on deeper reforms to Canada’s TRQ system.
  • Congressman Valadao applauded the initiation of the second USMCA Dispute Panel

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