Canada loses to U.S. in trade spat as panel says dairy rules defy USMCA pact – By Andrea Shalal and David Ljunggren (Reuters) / January 4, 2022
Canada said it was ‘pleased’ with the panel’s report because it ‘expressly recognizes the legitimacy of Canada’s supply-management system’
WASHINGTON — Canada violated a trade accord with the United States and Mexico by reserving most of its preferential dairy tariff-rate quotas for Canadian processors, a dispute panel found, and Washington warned it could retaliate if Ottawa does not change course.
The U.S. Trade Representative’s office claimed victory for Washington in the first dispute settlement panel ever brought under the U.S.-Mexico-Canada Trade Agreement (USMCA) that took effect in 2020.
Despite the ruling, Canada said the report found “overwhelmingly” in its favour because it supports the legitimacy of the country’s supply management system.
Canadian officials said that they were “ pleased ” with the panel’s report because it “expressly recognizes the legitimacy of Canada’s supply-management system.”
