Dairy dispute trade panel ruling leaves both Canada, U.S. claiming victory

U.S. trade officials argued Canada's dairy quote system is denying U.S. farmers their fair share of the supply-managed Canadian market.

Arbitrators have issued their final report into U.S. complaints about how Canada is interpreting North American trade rules around dairy imports — and both countries are claiming victory.

U.S. Trade Representative Katherine Tai formally requested a dispute settlement panel last May to examine allegations from American producers that Canada is denying them fair access to the Canadian market.

That panel, established under the U.S.-Mexico-Canada Agreement’s dispute-resolution system, says clearly that Canada’s practices are “inconsistent” with the commitments spelled out in the trade deal.

Tai’s office says it has “prevailed” in the dispute, which accused Canada of unfairly favouring Canadian processors, effectively denying U.S. farmers their fair share of the supply-managed Canadian market.

In their own statement, however, Trade Minister Mary Ng and Agriculture Minister Marie-Claude Bibeau say the ruling is “overwhelmingly in favour” of Canada’s dairy industry.

READ MORE: U.S. formally requests dispute resolution over Canada’s dairy import quotas

The Canadian statement acknowledges the report’s findings about quotas for dairy processors, but offers no clue as to whether the federal government plans to appeal or otherwise challenge the ruling.

“Our government, as it proceeds with the next steps in the process, will continue to work closely with the Canadian dairy industry,” the ministers say, adding that Canada takes seriously its international trade obligations.