The U.S. will not be backing down from demands that Canada dismantle its dairy supply management system even if the two countries and Mexico fail to renegotiate the North American Free Trade Agreement, according to U.S. government and industry officials.
The U.S. blames Canada’s tightly controlled dairy program, including the controversial Class 7 pricing mechanism, for distorting international markets. The U.S. continues to demand Canada dismantle it as part of the NAFTA renegotiations, but even if that fails, the U.S. is “actively considering” filing a complaint against Canada in the World Trade Organization, a U.S. government official confirmed for Agri-Pulse.
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