WASHINGTON (Reuters) – The United States said on Wednesday it was exercising its rights under the U.S.-Mexico-Canada (USMCA) trade agreement to challenge Canada’s allocation of dairy tariff-rate quotas.
“Canada’s measures violate its commitments and harm U.S dairy farmers and producers,” U.S. Trade Representative Robert Lighthizer said in a statement.
If the United States and Canada are not able to resolve Washington’s concerns through consultations, the United States may request the establishment of a USMCA dispute settlement panel on the issue, the USTR said.
“We are disappointed that Canada’s policies have made this first ever enforcement action under the USMCA necessary to ensure compliance with the agreement,” Lighthizer said.
(Reporting by Eric Beech; editing by Jonathan Oatis and Grant McCool)
