Canada to open dairy market more to US

Canada must open up the domestic dairy market more to American dairy producers, the disputes committee of the free trade agreement between the US, Canada and Mexico (USMCA) has ruled.

The neighboring countries squabble For a while about the interpretation of the trade agreement that replaced the former NAFTA in 2020 - under the rule of President Donald Trump. It was then agreed that a defined trading volume of dairy products such as yoghurt, cheese and milk powder could be traded between themselves at a zero rate (or limited tax).

Canada too chauvinistic 
The US accuses Canada of allocating 85% of the tariff-free quota to Canadian dairy processors, often leaving US processors behind. Canada contradicts this and says the policy is necessary for stability in the domestic dairy market.

The Disputes Committee recently ruled that Canada does indeed have preferential treatment for its own dairy industry. The American dairy industry is pleased with the decision made on December 20 and speaks of a victory. Canada has been given 45 days to adjust its import policy.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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