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ARTICLE · 12 JANUARY 2022

USMCA Panel Announces Win For US In Dairy TRQ Dispute With Canada

Husch Blackwell LLP
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Last week a decision was released in a dispute between the US and Canada related to Canada's dairy tariff-rate quotas under the United States-Mexico-Canada Agreement.

GlobalInternational Law
Emily R. Lyons
Emily R. Lyons

Last week a decision was released in a dispute between the US and Canada related to Canada's dairy tariff-rate quotas (TRQ) under the United States-Mexico-Canada Agreement (USMCA). The dispute settlement panel found that certain Canadian restrictions on use of the TRQs are in violations of its obligations under the free trade agreement. Specifically, the Panel found that Canada has breached its USMCA Article 3.A.2.11(b) commitments by "reserving TRQ pools exclusively for the use of processors."

The U.S. Trade Representative, Katherine Tai, lauded the victory in the in the first dispute settlement panel proceeding ever brought under USMCA. "Enforcing our trade agreements and making sure they benefit American workers and farmers is a top priority for the Biden-Harris Administration," said Ambassador Katherine Tai.  "That is why this Administration filed the first-ever panel request under the USMCA.  This historic win will help eliminate unjustified trade

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