Wisconsin Dairy Groups Say New Trade Dispute Could Lead To More Serious Action Against Canada Over Dairy Policy

By Hope Kirwan

Some Wisconsin dairy groups are applauding a move by the federal government to challenge Canada's dairy import system for a second time.

U.S. Trade Representative Katherine Tai announced her office has established a dispute settlement panel under the U.S.-Mexico-Canada Agreement, or USMCA. 

This is the second time the United States has challenged Canada's tariff-rate quota system, which allows a certain amount of products to be imported at a lower tax rate. When USMCA was established, the system was seen as a way for U.S. producers to increase exports of milk powder, butter, cheese and other products into Canada, which limits imports in order to protect their federal dairy supply management system.

Mykel Bickham is director of government affairs for Edge Dairy Farmer Cooperative based in Green Bay. She said the trade dispute matters to Wisconsin dairy producers and manufacturers because trade officials estimated the U.S. dairy industry would see an increase in exports under the new agreement.