U.S. Lawmakers Demand Action on Canada's USMCA Dairy Violations

According to the coalition, Canada has not honored its promise to expand market access for U.S. dairy products by misallocating tariff-rate quotas (TRQs) to Canadian processors instead of retailers and service providers. This has reportedly restricted access for American dairy exporters to the Canadian market, which is vital for California, the top agricultural exporting state in the U.S., contributing $2.6 billion in dairy exports alone.

The letter to the U.S. Trade Representative highlights the distortion in the market caused by Canada, which allegedly sold nonfat milk solids at artificially low prices globally, affecting U.S. prices. The representatives argue that despite U.S. challenges, Canada has not complied with its obligations, making the upcoming review a crucial opportunity to address these issues.

Both the International Dairy Foods Association and the National Milk Producers Federation have expressed support for the congressional letter, stressing the importance of USMCA for the U.S. dairy industry. The agreement is considered essential for maintaining economic stability for dairy producers, especially in California's Central Valley, where nearly 20% of America's milk supply is produced.

In a joint statement, the bipartisan group stated, "USMCA raised the bar for what trade agreements could be, yet Canada has still failed to uphold its dairy commitments. This review is the appropriate mechanism to strengthen enforcement, close loopholes, and ensure that the benefits envisioned under the agreement are fully realized."

The coalition's effort is part of ongoing attempts to ensure fair trade practices and market access for American dairy producers, emphasizing the need for collaboration between Congress and the Administration to maintain and strengthen USMCA agreements.