U.S. challenges Canada's management of new dairy rules, testing CUSMA

Canadian negotiators made concessions during trade talks, agreeing to new rules giving a larger slice of the Canadian dairy market to U.S. companies. Now U.S. Dairy Export Council has accused Canada of not living up to the deal.

The Canadian Press

WASHINGTON, D.C. — The United States is formally accusing Canada of unfairly limiting the ability of American dairy producers to sell their products north of the border.

Robert Lighthizer, President Donald Trump's trade ambassador, says the U.S. has made a formal request for consultations to address Canada's limits on a variety of dairy products.

It's a step toward setting up a dispute resolution panel, which would be the first of its kind under the U.S.-Mexico-Canada Agreement, which took effect in July.

The U.S. Dairy Export Council complained in June that Canada's so-called tariff-rate quotas deny American farmers rightful access to markets north of the border.

The council says the rates discourage the importing of certain high-value products, and give market access to competitors with little incentive to take advantage.

The federal Liberal government has insisted that the quotas are well within the bounds of the agreement.

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