WASHINGTON, D.C. (WJON News) - A trade dispute panel has delivered a setback for American Dairies.

A USMCA dispute panel has voted 2-1 to reject charges by the U.S. Department of Agriculture that Canada’s tariffs on American Dairy products violated the free trade agreement. Under the Canadian rules, tariffs are very low for imports up to a certain amount and then assigned a much higher rate for additional imports.

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American trade representatives claim the revised Canadian tariffs allow for preferential treatment of some importers over others.

Canada imposes a tariff-rate quota (TRQ) for the following dairy imports:

  • Milk,
  • Cream,
  • Skim milk powder,
  • Butter and cream powder,
  • Industrial cheeses,
  • Cheeses of all types,
  • Milk powders,
  • Concentrated or condensed milk,
  • Yogurt and buttermilk,
  • Powdered buttermilk,
  • Whey powder,
  • Products consisting of natural milk constituents,
  • Ice cream and ice cream mixes,
  • Other dairy.

The U.S. had won a similar dispute in 2021.

While there is no appeal process in this trade dispute, officials say they’ll continue to work with Canadian officials on leveling the field for dairy exports.

After Mexico, Canada is the U.S.’s third-largest trading partner, forecasted to buy more than $27 billion in U.S. food and ag exports in the next fiscal year.

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