WASHINGTON (Reuters) – Canada faces possible countermeasures if it fails to comply with the findings of a dispute panel that faulted it for reserving most of the in-quota quantity in its dairy tariff-rate quotas (TRQs) for the exclusive use of Canadian processors, a senior U.S. trade official said on Tuesday.
The U.S. Trade Representative’s office said Washington had prevailed in the first dispute settlement panel ever brought under the U.S.-Mexico-Canada Trade Agreement (USMCA). The report found Canada’s practice “inconsistent” with the trade deal.
The official said the United Sates expected Canada to resolve the issue by a deadline of Feb. 3 and its goal was not to impose retaliatory measures but it had the right to do so if Ottawa did not remove the restrictions.
(Reporting by Andrea Shala; Editing by Mark Porter)
