USMCA. trade

Press release:

Congressman Chris Jacobs (NY-27) is announcing the independent dispute panel has ruled in favor of the United States in the ongoing dispute over Canada’s Dairy Tariff Rate Quotas (TRQs). Canada has been in violation of provisions of the United States-Mexico-Canada Agreement (USMCA) negotiated by President Trump.

“Since the implementation of the USMCA, Canada has clearly violated provisions which expanded United States dairy exports to Canadian markets. Canada’s unfair policies cost American producers hundreds of millions in unrealized revenue,” Jacobs said. “Since I took office in 2020, I have been working to right this wrong and hold Canada accountable for these violations. Now, I am proud this advocacy on behalf of Western New York dairy farmers has paid off.”

Under the United States-Mexico-Canada Agreement (USMCA) Canada was allowed to use tariff-rate quotas (TRQs) for 14 different categories of dairy products including milk, cheese, and ice cream. These TRQs give favorable tax treatment to U.S. dairy products imported by Canada under a certain quantity. Contrary to what USMCA required, Canada set aside a percentage of products intended for these American imports solely for Canadian producers. This had the effect of denying American dairy farmers additional access to the Canadian market secured by USMCA.

Jacobs has taken numerous actions to resolve this dispute and hold Canada accountable for these violations. Jacobs sent a letter to former United States Trade Representative Robert Lighthizer calling for a dispute panel to be convened to settle this issue. That panel convened in December 2020 to attempt to settle the dispute. Jacobs held a press conference in July 2021 highlighting this issue, drawing public attention to Canada’s violations, and sending a letter to the Canadian Ambassador to the United States Kirsten Hillman calling for a quick resolution to the issue.

“Representing our region’s farmers is a responsibility I take very seriously. Since taking office, I have consistently worked to ensure they can access every opportunity available, and I will keep working to ensure farming has a prosperous future in Western New York,” Jacobs said.

Previously: Jacobs calls on Canada to honor pledge to import more U.S. dairy product (with video)