Catherine Ty, a United States trade representative, says the status of access to the Canadian dairy market remains a “source of great disappointment”, which, along with decades of controversy over conifers, represents “fundamental differences” between the Canadian and American approaches.
At the end of his trip to Canada, Ty said in an interview with Rosemary Barton Live on Sunday that rising housing costs are making the challenge of softwood even more difficult.
“Both of us remain committed to talking and breaking down the details of how we can make some progress. But it’s been a thorny issue for decades, for sure, “Ty told CBC chief political correspondent Rosemary Barton.
Ty was referring to his Canadian counterpart, International Trade Minister Mary Ng, whom he met this week.
WATCH The US Trade Representative discusses irritants in Canada-US relations:
How strong are trade relations between Canada and the United States?
Chief political correspondent Rosemary Barton spoke with US Trade Representative Catherine Ty on her first visit to Canada about the state of trade between the two nations. Thai says dairy management and supply remain a contentious issue between Canadian-US economies. 8:50
During a press conference in Ottawa on Thursday, the two repeatedly praised the two sides’ ability to deal with disputes and hold productive talks.
Canada has challenged existing US tariffs on Canadian softwood as part of the dispute settlement process in the new North American Free Trade Agreement. This is just the latest development in a battle that has been going on for decades.
Difficulties with dairy products
Another provision of the Canada-US-Mexico Agreement (CUSMA), which was seen as a victory by the Americans, was changes in access to the Canadian dairy industry. Ty challenged the interpretation of the terms of the Canadian deal, arguing that it did not apply them correctly.
In January, the Disputes Commission found that Canada was not keeping its promises on the deal, and the Americans declared victory. Canada proposed a new import distribution system, but it was criticized by US producers. The Canadian dairy industry has defended the country’s ability to set its own import framework.
But Ty told Barton that improved market access was “not realized”, a “source of great frustration” for US dairy farmers and select officials who supported CUSMA in part because of the dairy regulations.
Asked about the dairy dispute during their press conference on Thursday, Ng told reporters that Canada’s trade obligations were “something we take very seriously” and that “Canada will certainly implement the findings of the panel’s report.”
But she also noted that the federal government knows “how important this issue is for our farmers, for industry and for the workers they hire.”
“Of course, in a relationship as big as that between Canada and the United States, there will be problems. The question is really how we will work on these issues,” Ng said.
Mary Ng, right, Canada’s Secretary of International Trade and US Trade Representative Catherine Thai speak at a joint news conference in Ottawa on Thursday. (Adrian Wilde / Canadian Press)
Possible withdrawal of Chinese duties
Ty was also asked about the possibility of the United States removing some import duties on goods from China, first introduced under former President Donald Trump.
Ty signals that tariff elimination could be a tool to mitigate the effects of inflation in the United States
But she told Barton that this was the beginning of the process, and while rising prices were “worrying”, decisions must be made in the broader context of China-US trade considerations.
“Whatever we do in the short term to deal with the pressures and challenges we face in the short term, in my opinion, cannot undermine or lock us in a path that will make us more vulnerable and less strong. in the medium term. from those turbulent years, “she said.
You can watch full episodes of Rosemary Barton live CBC Gem, the CBC streaming service.
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