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Farm groups and lawmakers press for stronger USMCA enforcement over Canadian dairy access
Summary
Representatives and dairy industry witnesses told the Trade Subcommittee that Canada's administration of tariff-rate quotas and export practices deny U.S. dairy producers the market access promised under USMCA, urging renewed negotiations and use of dispute mechanisms ahead of the 2026 USMCA review.
Several members of the House Ways and Means Trade Subcommittee raised longstanding agricultural complaints about Canada's dairy policies and other foreign barriers during a hearing focused on enforcement priorities. Agricultural witnesses said Canada's administration of tariff‑rate quotas (TRQs) and other measures prevent U.S. dairy exporters from realizing promised market access under the United States'Mexico'Canada Agreement.
Ambassador Greg Dowd, president and CEO of the National Milk Producers Federation, said "Canada has a long history of attempting to undermine previously agreed to market access," pointing to TRQ allocation and what he described as systemic circumvention of USMCA disciplines. Dowd told members that Canada allocates TRQs to processors and retailers closely linked to its domestic industry, rather than to buyers that would import U.S. product.
Members pressed for concrete action. Chairman Smith and several Republican members said the administration should pursue dispute settlement and, if necessary, other enforcement measures. Dowd said the USMCA'era dispute process must be used more aggressively and that the upcoming 2026 USMCA review is an opportunity to renegotiate or clarify implementation.
Other agriculture topics raised included: - Mexico: Members and witnesses discussed Mexican measures restricting biotech corn and the July 2022 request for consultations under USMCA; witnesses said further steps were needed to pursue the dispute. - Colombia: Chairman Smith raised concern about politically motivated countervailing duty investigations in Colombia affecting U.S. milk powder and ethanol. - European Union: Witnesses described a large agricultural trade deficit with the EU and complained about geographic indications and certification requirements that limit U.S. dairy access.
Why it matters: U.S. dairy exporters send a significant share of production to North American markets; several witnesses said roughly 44% of U.S. dairy exports go to Canada and Mexico and that enforcement failures have economic consequences for farmers.
No formal votes were taken. Members asked witnesses for followup materials and signaled that the committee will press agencies and the administration to use trade remedies and dispute mechanisms more aggressively to restore promised access to foreign markets.
Ending: The hearing underlined that agricultural trade enforcement is a bipartisan focus; witnesses and lawmakers linked enforcement to upcoming reviews and possible legislative fixes.
