The first USMCA consultations request is here. Not surprisingly, it relates to Canadian dairy TRQs, a frequent source of trade irritation. Is there a violation? I have no idea! Some of the issues seem factual in nature. For example, there is a claim under this provision:
11. A Party administering an allocated TRQ shall ensure that:
...
(b) unless otherwise agreed by the Parties, it does not allocate any portion of the quota to a producer group, condition access to an allocation on the purchase of domestic production, or limit access to an allocation to processors;
The claim is that:
the measures appear to be inconsistent with Article 3.A.2.11(b) because Canada is setting aside and reserving a portion of the quota to processors.
So is Canada doing that? Maybe someone who knows about Canadian TRQ programs has some thoughts, but I really don't know.
ADDED:
There may also be a legal interpretation issue here: Is "limit access to an allocation to processors" the same thing as "setting aside and reserving a portion of the quota to processors"? What exactly does USTR mean by its allegation?
