Dairy is expected to become the first enforcement action under the U.S.-Mexico-Canada Agreement (USMCA), with reports indicating U.S. Trade Representative Robert Lighthizer to possibly announce the action this week.
Dairy interests and several lawmakers have pressed the administration to take action on how Canada has implemented its quotas on dairy. The action could be a request for consultations which would be the first step under USMCA dispute process. Under the provisions, Canada would have 15 days to respond relative to perishable items and 30 days for non-perishable items.
Meanwhile, a U.S.-Brazil trade deal is also awaited. The U.S. and Brazil On September 14 set a 90-day timeline for the two countries to negotiate on issues involving ethanol, sugar and corn trade.
The 90-day timeline would be reached December 14. If the two sides cannot find an agreement, then Brazilian tariffs on imports of U.S. ethanol would rise.