March 12, 2024

US Agriculture Secretary seeks solutions to boost dairy exports to Canada

US Agriculture Secretary, Tom Vilsack, said that the Biden administration is exploring innovative approaches to enhance the sale of US dairy products in Canada following a trade dispute panel's ruling favouring Canadian restrictions on dairy import quotas, Reuters reported.

Vilsack emphasised the need to find creative avenues to promote and sell dairy products in Canada, ensuring fair market access as per the commitments made by Canadian authorities.

While refraining from divulging specific strategies, Vilsack noted that the US Department of Agriculture (USDA) and the US Trade Representative's office (USTR) are deliberating on the next course of action regarding the longstanding trade dispute over Canada's predominantly closed dairy market.

The dispute revolves around Canada's allocation of import quotas, predominantly favouring Canadian processors, which the US contends limits American access to the Canadian dairy market. Despite a previous ruling favouring the US, challenges persist in gaining broader access for US dairy products.

Vilsack underscored the importance of upholding the 2022 decision of a USMCA dispute panel, which found Canada's allocation of tariff rate quotas to be inconsistent with the trade agreement. He stressed the need for continued advocacy to ensure fair market opportunities for U.S. dairy products in Canada.

Despite acknowledging the entrenched nature of Canada's supply management system in its domestic politics, Vilsack expressed concerns about Canadian consumers paying excessively high prices for dairy products due to the system's restrictive measures. However, he recognised the formidable advocacy efforts of Canada's dairy farming community, which wields considerable influence in Canadian politics.

-      Reuters