Washington, March 30 (AFP/APP): American dairy farmers are not getting enough access to the Canadian market despite a trade agreement between the two countries, US Trade Representative Katherine Tai said Wednesday.
Washington and Ottawa have a longstanding dispute over dairy trade, but Tai said she had expected the United States-Mexico-Canada Agreement (USMCA) governing commerce among the nations to bring improvements.
“I think that there was a clear understanding on our side, that dairy market access would be improved under the USMCA, and we have not seen that,” Tai told the House Ways and Means Committee. “And so, from a USTR perspective, we will not give up.”
The USMCA, which replaced the North American Free Trade Agreement in place since 1994, came into force in the midst of the Covid-19 pandemic after lengthy negotiations among the countries.
“I absolutely respect the aspirations of our dairy farmers and I look forward to working with you, including on strategy, for where we go next in contending with a continuing challenge with Canada,” Tai told lawmakers.
In January, Washington prevailed over Ottawa in a dispute over restrictions in the Canadian dairy industry, in the first-ever use of the new agreement’s provisions to resolve grievances. However, it’s unclear if Canada has lifted its trade restrictions.
Tai also addressed Ottawa’s complaints about US anti-dumping and countervailing duties on Canadian softwood lumber.
“Ensuring that US softwood lumber producers are able to compete on a level playing field against the harmful effects of unfairly subsidized and dumped Canadian imports is an important priority for us,” she said, while noting that supply chain snarls are affecting the situation.
Tai expressed Washington’s willingness to ending the dispute, saying “I frequently discuss softwood lumber issues with my Canadian counterpart.”
“But it does take two to tango,” she added.
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