Canada welcomes CUSMA dispute settlement panel findings on dairy tariff rate quotas

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Source: Global Affairs Canada

The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, and the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, today issued the following statement in response to the release of the dispute settlement panel report regarding Canada’s administration of its dairy tariff rate quotas under the Canada-United States-Mexico Agreement (CUSMA):

“Canada is very pleased with the dispute settlement panel’s findings, with all outcomes clearly in favour of Canada. This is good news for Canada’s dairy industry and our system of supply management.”

“The Government of Canada will continue to preserve and defend Canada’s supply management system, which supports producers by providing the opportunity to receive fair returns for their labour and investments, brings stability for processors and benefits consumers by providing them with a steady supply of high-quality products.

“Canada looks forward to working with the United States and Mexico to ensure that our industries and workers continue to enjoy the benefits of CUSMA.”

Quick facts

  • Today’s announcement follows the United States’ request for a dispute settlement panel on January 31, 2023.
  • There is no appeal process for dispute settlements under CUSMA.
  • Canada’s dairy sector is a vital pillar of rural communities and a key driver of the economy, with more than 9,700 farms and 500 dairy processing plants generating $8.2 billion in farm cash receipts and $17.4 billion in sales in 2022.
  • Together, dairy production and processing activities account for more than 70,000 jobs in Canada.