Edge applauds USTR action in Canada quota dispute

Edge Dairy Farmer Cooperative

Edge Dairy Farmer Cooperative, one of the largest dairy co-ops in the country, is supporting action by the Office of the U.S. Trade Representative (USTR) related to tariff-rate quotas in Canada.

USTR said it is officially pursuing consultations with Canada over that country’s announced allocation of the quotas for U.S. dairy products as a result of the United States-Mexico-Canada Agreement (USMCA). Requesting consultations is the first step in the USMCA’s dispute settlement process.

United States Trade Representative Robert E. Lighthizer said in a statement that the U.S. under the USMCA is challenging Canada’s allocation of dairy tariff-rate quotas (TRQs).  By setting aside and reserving a percentage of each dairy TRQ exclusively for processors, Canada has undermined the ability of American dairy farmers and producers to utilize the agreed-upon TRQs and sell a wide range of dairy products to Canadian consumers.

Brody Stapel

“Today’s announcement shows that the USTR office is ensuring that our dairy farmers and processors realize the additional market access of the newly minted USMCA trade agreement. On behalf of our dairy farmers, Edge appreciates USTR’s commitment to hold Canada to the agreement as intended and negotiated,” said Edge President Brody Stapel.

About the quotas: Essentially, tariff-rate quotas allow countries to export specified quantities of a product at a relatively low tariff but subject all imports of the product above a pre-determined threshold to a higher tariff.