In response, Canadian Trade Minister Mary Ng said previous dispute settlement panels “have repeatedly confirmed that our supply management system is in line with our international trade obligations” and that the CUSMA terms surrounding import tariffs are being upheld.
“We look forward to demonstrating how Canada is meeting its CUSMA obligations during the new consultations on allocations of dairy tariff-rate quotas,” the minister said in a statement.
“As we have always done, and we will continue to do, we will stand up, work with, and defend our dairy farmers and workers.”
A tribunal ruled in December that Canada violated the terms of CUSMA by setting aside the vast majority of low-tariff imports from the U.S. exclusively for use by its own dairy processors. The final report, released in early January, said Canada’s practices were “inconsistent” with the trade deal.
Yet the decision prompted both countries to declare victory, with Ng saying the ruling was “overwhelmingly in favour” of Canada’s dairy industry.
U.S. exporters argue that Canadian consumers are being forced to pay artificially high prices on dairy products as a result of those practices, despite promises made to let them in.
Prices have only gone up since then, rising about 20 per cent in several provinces as dairy farmers struggle to keep up with record inflation.