Minister Ng and Minister Bibeau welcome Canada-United States-Mexico Agreement dispute settlement panel report on dairy tariff rate quotas


January 4, 2022 - Ottawa, Ontario - Global Affairs Canada

The Honourable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, and the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, today issued the following statement in response to the release of the dispute settlement panel’s report under the Canada-United States-Mexico Agreement (CUSMA) regarding Canada’s administration of its dairy tariff rate quota (TRQ) policies.

“We are pleased with the dispute settlement panel’s report, which ruled overwhelmingly in favour of Canada and its dairy industry. In particular, it is important to note that the panel expressly recognizes the legitimacy of Canada’s supply management system. The panel also confirms that Canada has the discretion to manage its TRQ allocation policies under CUSMA in a manner that supports Canada’s supply management system.

“We have taken note of the panel’s finding regarding Canada’s practice of reserving TRQ pools for the use of dairy processors. Our government, as it proceeds with the next steps in the process, will continue to work closely with the Canadian dairy industry. Canada takes its commitments and obligations under international agreements seriously. These include those that Canada has under CUSMA with the United States, Canada’s closest trading partner.

“The Government of Canada will continue to stand up for its dairy industry, farmers and workers and the communities they support, and it will continue to preserve, protect and defend the supply management system.”

Quick facts

  • Today’s announcement follows the United States’ request for a dispute settlement panel on May 25, 2021.
  • Within 45 days of the final report—no later than February 3, 2022—the parties to the dispute settlement panel must endeavour to agree on a resolution of the dispute.
  • Canada’s dairy industry is a vital pillar of rural communities and a key driver of Canada’s economy. There are 10,095 dairy farms in Canada, which directly support approximately 19,000 jobs. The demand for Canadian dairy products remains strong. This demand has led to a 10% increase in raw milk production in the last 5 years.

Associated links


Alice Hansen
Press Secretary
Office of the Minister of International Trade, Export Promotion, Small Business and Economic Development

Media Relations Office
Global Affairs Canada

Marianne Dandurand
Press Secretary
Office of the Minister of Agriculture and Agri-Food

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