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U.S. tests CUSMA, issues challenge to Canada’s dairy quotas

U.S. Trade Representative Robert Lighthizer speaks during a Senate Finance Committee hearing on U.S. trade on Capitol Hill, Wednesday, June 17, 2020, in Washington. If the long-awaited debut of Canada's new trade pact with the United States and Mexico augurs a new dawn in North American relations, Robert Lighthizer sure has a funny way of showing it. THE CANADIAN PRESS/AP, New York Times Anna Moneymaker, Pool. THE CANADIAN PRESS/AP, New York Times Anna Moneymaker, Pool

The United States is formally accusing Canada of unfairly limiting the ability of American dairy producers to sell their products north of the border.

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Robert Lighthizer, President Donald Trump‘s trade ambassador, says the U.S. has made a formal request for consultations to address Canada’s limits on a variety of dairy products.

It’s a step toward setting up a dispute resolution panel, which would be the first of its kind under the U.S.-Mexico-Canada Agreement, which took effect in July.

The U.S. Dairy Export Council complained in June that Canada’s so-called tariff-rate quotas deny American farmers rightful access to markets north of the border.

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The council says the rates discourage the importing of certain high-value products, and give market access to competitors with little incentive to take advantage.

The federal Liberal government has insisted that the quotas are well within the bounds of the agreement.

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