Possible Trade Dispute Looms with the U.S.

Canada could be heading for another trade dispute with the US, just days before the USMCA takes effect, replacing NAFTA.

 

Recently the top trade negotiator in the US, Bob Lighthizer, who was at the forefront of the USMCA over the past 3 years, accused Canada of "shading" its dairy obligations and breaking agreements over aluminum exports. That led to the White House suggesting this week, it may impose a 10 percent tariff on Canadian aluminum imports as early as this Friday.

 

Lighthizer says the relationship between the two nations began to sour after our federal government introduced new dairy quotas that Lighthizetr alleges go against new trade policies between the two nations. Former USDA secretary, Tom Vilsack, said Canada's actions place the U.S. dairy industry at a disadvantage by discouraging utilization of the full use of the tariff related quotas and limiting the market access granted by USMCA." There's been a great deal of concern among Canadian dairy producers over the USMCA with many upset about having to give up more market share to the US, so American products can be sold in Canada, as part of the agreement. They're also not happy with the July 1st launch date. Prime Minister Trudeau has assured Canadian dairy producers, they will be compensated for that lost share of the market.

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