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U.S. Says Canada Shields Its Dairy Market in Violation of Trade Pact

WASHINGTON—The Trump administration submitted a complaint against Canada about the marketplace obtain for U.S. dairy merchandise, in the very first enforcement motion beneath the U.S.-Mexico-Canada Settlement.

U.S. Trade Agent

Robert Lighthizer

explained Wednesday that Canada has hampered the means of American dairy farmers and producers to offer their merchandise, by using quotas that prefer Canadian producers.

In a letter to his Canadian counterpart, Mr. Lighthizer explained the U.S. was performing exercises its rights to enforce the USMCA, introducing that Washington may well ask for the institution of a USMCA dispute-settlement panel if the U.S.’s concerns are not dealt with.

“Canada’s actions violate its commitments and damage U.S dairy farmers and producers,” Mr. Lighthizer explained in a written assertion. “We are disappointed that Canada’s policies have designed this very first at any time enforcement motion beneath the USMCA required to make sure compliance with the settlement.”

A spokeswoman for

Mary Ng,

Canada’s minister of small enterprise, export promotion and worldwide trade, explained her region was “in comprehensive compliance with its commitments” beneath the USMCA.

The absolutely free-trade settlement with Canada and Mexico came into effect earlier this calendar year after the Trump administration renegotiated the terms of the North American Free of charge Trade Settlement, its predecessor.

In accordance to the International Trade Commission, the USMCA—if carried out as negotiated—would improve U.S. dairy exports by additional than $314 million a calendar year.

The U.S. dairy sector, with guidance from several users of Congress, has complained about its marketplace obtain to Canada.

“USMCA is created to make improvements to trade with Canada, even though modifying some of Canada’s trade-distorting dairy policies. We realized from day a single that enforcement would be important to bringing the supposed rewards household to America’s dairy sector,” explained

Tom Vilsack,

president and main executive of the U.S. Dairy Export Council.

Mr. Vilsack is President-Elect

Joe Biden’s

decide on for agriculture secretary, the position Mr. Vilsack held during the Obama administration.

Produce to Yuka Hayashi at [email protected]

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