Jaime Castaneda, senior vice-president for the U.S. Dairy Export Council, said his organization will pursue fresh challenges through the World Trade Organization unless Canada stops its new pricing.
“If we can’t resolve this through negotiations, I believe my members will be very clear that everything is on the table,” he said in a phone interview.
A WTO panel ruled in 2002 that Canada breached its trade obligations through illegal subsidies to its dairy industry, siding with the United States. The U.S. and Canada reached a settlement in 2003.
The WTO ruled that Canada was able to market dairy products at low world prices only because dairy farmers could cross-subsidize from the higher-priced milk they sell on the Canadian market.
The U.S. will probably make the same cross-subsidy argument in challenging the new pricing regime adopted by provincial marketing boards.
Some warned the marketing boards this would happen.