U.S. Rejects Canada’s Second Proposal to Fix Dairy Quotas

Ag Secretary Vilsack has called Canada’s second proposal for modifying its tariff rate quotas for U.S. dairy “unacceptable and that key changes are needed before the dispute is resolved.”

Vilsack, speaking to Agri-Pulse after he met with Canadian Agriculture Minister Marie-Claude Bibeau on the sidelines of a G7 summit of ministers in Germany, stressed that “there is a need for Canada to make a much better effort than they’re making right now.”

A three-member USMCA dispute panel agreed in December that Canada was manipulating its dairy quotas. Canada then agreed to alter its quotas that were originally intended to increase U.S. access to Canada’s market for milk, cheese, cream, skim milk powder, butter, ice cream and whey.

Canada published its first proposal in response to the panel’s ruling in March, and it was quickly rejected by the U.S. government, U.S. dairy groups and even some Canadian importers who wanted more access to U.S. cheese and other products