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COA Meeting start date 24/03/2025
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On 4 March 2025, the United States (U.S.) implemented tariffs on its imports of goods – including 25% tariffs (ad valorem basis) on all agriculture goods – from Canada and Mexico, its two close allies and trading partners, including as parties to the United States-Mexico-Canada Agreement (USMCA). 

The U.S. WTO Goods Schedule contains bound tariffs set below 25% (ad valorem basis) across every agriculture-related HS Chapter and group of products (Agreement on Agriculture Annex 1 definition), including grains and oilseeds, meat and meat products, fruits, nuts and vegetables, dairy products as well as processed agri-food products and beverages, with only very few products with bound tariffs set above 25% (ad valorem basis). 

As such, this measure is a blatant violation of the U.S.’ market access obligations at the WTO, negatively impacting over USD 35 billion worth of annual agriculture and agri-food imports from Canada (2020-2024 average). 

a. Has the US considered the severe negative impacts of these unjust tariffs on the rules-based multilateral trading system?

b. Has the US considered the impacts such tariffs will have on North American and global food security, economic growth and prosperity?

c. Considering the highly integrated nature of North America’s supply chains, including in the agricultural sector, has the US considered the negative impacts these tariffs will have on inflation, including food prices?

Answer
Answer Full Text
As this matter is currently subject to the dispute settlement process, it would be inappropriate to comment on its merits. The United States will fully exercise its rights under the Dispute Settlement Understanding to defend its interests.
Follow-up comments

​The European Union (EU) believed that the recent U.S. announcements about tariff measures were a step in the wrong direction. The EU noted that, for decades, it had worked with trading partners like the US to reduce tariffs and other trade barriers worldwide, reinforcing this openness through binding commitments in the rule-based trading system- commitments that the U.S. was now undermining. In EU's view, the announced measures were both unjustified and economically counterproductive. The EU further noted that, by imposing additional tariffs, the US was taxing its own citizens, raising costs for business, stifling growth, and fuelling inflation. The EU highlighted that unpredictable increases in tariffs were harmful not just for the trading partners directly involved but heightened economic uncertainty and had disruptive effects for many others and the global trading system overall. Canada thanked the EU's support to this matter. It noted that the United States' series of tariff announcements, pauses, and actions taken in the past months had caused significant uncertainty and instability. They were disrupting and weakening supply chains, leading to a cascade of negative effects on farmers, agribusinesses, and consumers, not only in North America, but globally. Seeing cancelled orders, contract breaches, and widespread confusion about potential tariffs, Canada highlighted that applying tariffs above commitment levels on agriculture products undermined the balance of concessions that was struck between Members across all three pillars, market access, domestic support, and export competition. Canada stated that, as noted by the United States, it had requested WTO dispute consultations on this matter, and it looked forward to a swift resolution.​

AGCD To Complete
Keywords
Collapse Market accessMarket access
Collapse Tariff and other quotasTariff and other quotas
Transparency issues
Tariff quota fill
Product/tariff line coverage
Country-specific allocation
Allocation of licences to importing entities
Period of importation and licence validity
Other administration arrangements
ST Annex 5
Autonomous tariff quota access
Other
Collapse SSGSSG
Transparency issues
Trigger calculations
Perishable and seasonal products
Other implementation issues
Link with TRQ commitments
Other
Collapse Other import policiesOther import policies
Scheduled tariff commitments including tariff renegotiations
Import licensing
Import prohibitions and restrictions (including quantitative restrictions)
Minimum import/reference prices
State trading enterprises
SPS and TBT
Other
Collapse Domestic supportDomestic support
Collapse Transparency issues (including Table DS:2)Transparency issues (including Table DS:2)
Transparency issues (including Table DS:2)
Collapse Annex 2 (Green Box)Annex 2 (Green Box)
General services: research
General services: pest and disease control
General services: training services
General services: extension and advisory services
General services: inspection services
General services: marketing and promotion services
General services: infrastructural services
General services: other
Public stockholding for food security purposes
Domestic food aid
Direct payments: decoupled income support
Direct payments: income insurance and income safety-net programmes
Direct payments: payments for relief from natural disasters
Direct payments: structural adjustment assistance provided through producer retirement programmes
Direct payments: structural adjustment assistance provided through resource retirement programmes
Direct payments: structural adjustment assistance provided through investment aids
Direct payments: payments under environmental programmes
Direct payments: payments under regional assistance programmes
Direct payments: other
Other
Collapse Article 6.2 (Special and Differential Treatment / Development Programmes)Article 6.2 (Special and Differential Treatment / Development Programmes)
Investment subsidies generally available to agriculture
Input subsidies available to low-income or resource-poor producers
Support to encourage diversification from growing illicit narcotic crops
Other
Collapse Article 6.5 (Blue Box)Article 6.5 (Blue Box)
Payments based on fixed areas or yields
Payments based on 85 per cent or less of the base level of production
Livestock payments made on a fixed number of head
Other
Collapse Current Total AMS (Amber Box)Current Total AMS (Amber Box)
Scheduled commitment level
Constituent data and methodology (AGST)
Market price support
Market price support: Eligible production
Other product-specific AMS/EMS
Non-product-specific AMS
Negative support amounts
De minimis
Excessive rates of inflation
Other
Collapse Classification of measuresClassification of measures
Classification of measures
Collapse Export competitionExport competition
Collapse Export subsidies subject to reduction commitments (Article 9.1)Export subsidies subject to reduction commitments (Article 9.1)
Transparency issues
Product coverage/scheduled commitments
Incorporated products
Special and differential treatment (Article 9.4)
Government involvement
Downstream flexibilities (Article 9.2)
Other
Collapse Circumvention of commitmentsCircumvention of commitments
Unscheduled export subsidies
Export credits, export credit guarantees, insurance programmes
International food aid
State trading enterprises
Other measures with circumvention potential
Quantity of total exports
Other
Collapse Export restrictions and prohibitionsExport restrictions and prohibitions
Collapse Transparency issuesTransparency issues
Timely notification
Special and differential treatment
Provision of information justifying the measure
Other
Collapse Importing Members' food securityImporting Members' food security
Importing Members' food security
Collapse ConsultationsConsultations
Consultations
Collapse NFIDCNFIDC
Collapse Quantity and concessionality of food aidQuantity and concessionality of food aid
Quantity and concessionality of food aid
Collapse Other forms of assistanceOther forms of assistance
Other forms of assistance
Product Categories
All agricultural products
Collapse Live animalsLive animals
Bovine
Swine
Sheep and goat
Poultry
Horses
Other
Collapse MeatMeat
Bovine
Swine
Sheep and goat
Poultry
Horses
Other
Collapse DairyDairy
Milk
Milk powders
Butter
Cheese
Other
Collapse Other animal productsOther animal products
Eggs
Hair, Shells, bones, etc.
hides and Skins
Other
Collapse Fruit and VegetablesFruit and Vegetables
Fresh vegetables
Processed vegetables
Roots and tubers
Fruit
Nuts
Processed fruit or nuts
Fruit and vegetable beverages
Collapse Coffee, tea, spicesCoffee, tea, spices
Coffee
Tea
Mate
Spices
Collapse CerealsCereals
Wheat
Corn
Rice
Malt
Coarse grains
Collapse Starches, inulin, gumStarches, inulin, gum
Wheat
Corn
Processed vegetables
Roots and tubers
Other
Collapse Oil seeds, fats and oilsOil seeds, fats and oils
Seeds
Vegetable oils and fats
Fats/Oils of animal origin
Other fats and oils
Collapse Residues of processing industryResidues of processing industry
Wheat
Corn
Animal feed
Alcohol residues
Oilcakes and solid residues
Other residues
Collapse Plants and vegetal materialPlants and vegetal material
Live trees and plants
Cut flowers
Animal feed
Gums, saps and resins
Seeds
Medicinal/perfumery plants
Sugar
Other
Collapse SugarSugar
Cane or beet sugar
Other
Collapse CocoaCocoa
Cocoa beans/powder/butter
Other
Collapse Food preparationsFood preparations
Cereal
Oils
Coffee
Tea
Other
Collapse BeveragesBeverages
Waters
Alcoholic
Other
Collapse TobaccoTobacco
Tobacco
Cigars, Cigarettes
Other
Essential oils, fatty acids and alcohols and other chemicals
Collapse FibresFibres
Cotton
Silk
Wool
Other
Collapse non-Annex 1 productsnon-Annex 1 products
non-Annex 1 products
Question Summary
U.S. applied tariffs
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