It complained in 2021 that Canada assigned the import rights negotiated under the trade deal among Mexico, the U.S. and Canada to Canadian dairy-processing companies that have more interest in marketing their own products than importing competitors’ products.
The panel agreed with the U.S. and said Canada needs to amend its tariff-rate quota permits administration.
The U.S. wants at least some of the import permits given to retailers and wholesalers.
A new panel . . . is necessary because Canada failed to adequately respond to the first one, said U.S. Trade Representative. Katherine Tai.
“The Canadian government’s revised measures have not fixed the problem,” Tai said in a statement.
Canadian Trade Minister Mary Ng ssid “Canada will continue to defend our supply management system and the market access which was agreed upon with the U.S. We will stand firm against attempts to renegotiate during this dispute settlement panel process.
Undermining the Canadian case is a report prepared by a team of journalism students in Quebec who talked to a cheese maker who was assigned import permits and said he has no intention of importing from the U.S.
Americans have been unable to fill the quota they won in the trade negotiations.
