Canada-US dairy trade
Canada loses to US in first dispute under new Canada-US-Mexico Agreement on dairy imports
Ottawa/IBNS: Canada has lost to the US in the first-ever dispute case under the new North American trade agreement when a three-member panel agreed that Canada's imposition of complicated rules violated its promise to allow more dairy imports.
Dairy was one of the most important issues in negotiating the new Canada-US-Mexico Agreement on trade (CUSMA).
The US reportedly said that if Canada does not comply with the ruling until Feb 3, it would penalize the latter to pay a tariff, equivalent to the value of the damage American dairy producers suffered.
This report was released to the countries in a full confidential version on Dec 20.
On Tuesday a 53-page public version of the initial report was released.
Canada noted that the panel's upholding Canada's system of supply management of its dairy sector was a partial victory for the Canadian government.
Exporting more dairy was a top priority in the US but being pressurized by producers concentrated in Central Canada new imports were prevented by the Canadian government.
The US argued that Canada's tighter controls were unfair as they blocked competition, and innovation, and can lead to higher prices for consumers.
(Reporting by Asha Bajaj)
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