US "Canada's Dairy Quota Management Unfair"... Initiation of Trade Dispute Resolution Procedure

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The Wall Street Journal (WSJ) reported on the 25th (local time) that the United States has initiated a dispute resolution procedure under the United States-Mexico-Canada Agreement (USMCA), citing unfairness in Canada's operation of the low-tariff quota (TRQ) system for dairy products.

The U.S. government raised the issue in December last year during President Donald Trump's administration. After conducting consultations with Canada without significant progress, it recently entered the dispute procedure. Accordingly, the U.S. and Canada plan to convene a dispute resolution panel for the first time to investigate under the USMCA.

The U.S. Trade Representative (USTR) believes that Canada allocates the low-tariff quota (TRQ) volumes for 14 dairy products, including powdered milk, cheese, and ice cream, to its domestic processors, disrupting the export of various U.S. dairy products. Dairy trade issues were also one of the major points of contention between the U.S. and Canada during the USMCA negotiations.

Regarding this, Mary Ng, Canada's Minister of Trade, stated, "We are confident that we are faithfully implementing the USMCA and will strongly defend our position through the dispute resolution process."

The WSJ forecasted that if the U.S. government wins in this dispute resolution procedure, Canada will have to take corrective measures, and even if the U.S. does not win, it will respond by imposing tariffs on Canadian products.

This content was produced with the assistance of AI translation services.