Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Dairy
Record date: 2026-07-23
( printed page 46653) Proclamation 11047 of July 20, 2026 Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Dairy A Proclamation 1. Section 338 of the Tariff Act of 1930 ( 19 U.S.C. 1338 ) (section 338) empowers the President to, among other things, impose duties on imports of a foreign country to offset the burden or disadvantage from a foreign country's discrimination against or unequal imposition on the commerce of the United States. 2. Canada, through discrimination or an unreasonable
What this record contains
- Federal Register document
- 2026-14992
- Publication date
- 2026-07-23
- Citation
- 91 FR 46653
- Issuing office
- Executive Office of the President
Official record excerpt
( printed page 46653) Proclamation 11047 of July 20, 2026 Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Dairy A Proclamation 1. Section 338 of the Tariff Act of 1930 ( 19 U.S.C. 1338 ) (section 338) empowers the President to, among other things, impose duties on imports of a foreign country to offset the burden or disadvantage from a foreign country's discrimination against or unequal imposition on the commerce of the United States. 2. Canada, through discrimination or an unreasonable and unequal imposition, treats the commerce of certain foreign countries more favorably than commerce of the United States with respect to dairy and in turn, places a burden and disadvantage on the commerce of the United States. Specifically, Canada denies the commerce of the United States benefits that Canada affords to materially similar dairy commerce from certain other foreign countries and thus unreasonably burdens and disadvantages U.S. commerce compared to the commerce of certain other foreign countries. 3. Canada maintains a tariff-rate quota (TRQ) on cheeses of all types under the United States-Mexico-Canada Agreement (USMCA) as well as a TRQ on cheese of all types under the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA). The TRQs provide duty-free access for the covered dairy products up to specified annual quantities (in-quota quantities) and apply a customs duty to imports that exceed the respective in-quota quantities. 4. To access the TRQs under the USMCA and the CETA, Canada's dairy TRQ allocation measures establish eligibility criteria. But Canada does not have the same eligibility criteria for the USMCA and the CETA, disfavoring the commerce of the United States. While Canada's eligibility criteria for the USMCA dairy TRQs—and specifically, the cheeses of all types TRQ—do not allow retailers to obtain and use TRQ quantities, the eligibility criteria for the CETA do grant retailers access to the TRQ quantity for cheese of all types. 5. By making retailers ineligible to use the USMCA TRQ for cheeses of all types, Canada discriminates against U.S. goods that are similar to EU goods that are entered pursuant to the CETA cheese of all types TRQ. Canada thus denies to the United States the favorable treatment that Canada provides to the EU and its member States. This discrimination impedes market access into Canada and results in lost sales or revenues for U.S. dairy producers and exporters, among other things. The United States, U.S. businesses and workers, and U.S. commerce are negatively affected by Canada's discriminatory practices. 6. Accordingly, pursuant to section 338, I find as a fact that Canada is discriminating in fact against the commerce of the United States through Canada's TRQ allocation measures imposed on U.S. cheeses of all types under the USMCA, as compared to Canada's TRQ allocation measures imposed on EU cheese of all types under the CETA. I also find as a fact that this discrimination places the commerce of the United States at a ( printed page 46654) disadvantage compared to the commerce of the EU and its member States. And I find as fact that Canada's imposition is unreasonable, is not equally enforced upon the like articles of every foreign country, and places a burden on the commerce of the United States. 7. Further, I find that imposing additional ad valorem duties on certain products of Canada to address the burden or disadvantage from this discrimination or unequal and unreasonable imposition is in the public interest, will serve the public interest, and is consistent with the interests of the United States. When U.S. producers are unfairly denied export opportunities by Canada's TRQ allocation measures, they lose sales or revenues that support production in the United States, among other things. This suppresses U.S. agricultural output as well as investment and thereby undermines employment and economic vitality in American communities. Imposing additional duties on certain products of Canada will, among other things, expand opportunities for U.S. producers to compete within the U.S. market, enhancing American production and bringing attendant economic and societal benefits, and may spur Canada to remove the discrimination against U.S. cheeses of all types. 8. Accordingly, I find that it is necessary and appropriate and in the public interest
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