
The Office of the U.S. Trade Representative launched an enforcement action against Canada in December, and farmers and agricultural organizations are eagerly waiting to see how the disagreement unfolds under the new Biden administration.
“This is the first test of the new U.S.-Mexico-Canada trade agreement, and we will be watching it closely for how each side handles the dispute and what possible impacts will trickle down to producers,” said Ben Rowe, national affairs coordinator for Virginia Farm Bureau Federation.
Former USTR Robert Lighthizer brought the enforcement action against Canada, challenging its allocation of negotiated dairy tariff-rate quotas for dairy products. Under the USMCA agreement, Canada can impose TRQs at specific thresholds, setting limits on the quantity of certain dairy products that can be imported at a lower tax rate.
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