Economics
U.S. Wins Canada Trade Spat as Panel Says Dairy Rules Defy Pact
- Canada has one month to comply with quota-allocation ruling
- Biden administration had complained about Canada restrictions
Dairy cows at a farm in Crestwood, Kentucky.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
The U.S. notched a victory in a spat with Canada over dairy trade, with a dispute-settlement panel finding that the nation’s allocation of American lower-tariff imports violates their agreement.
The arbiters found that Canada is breaching its commitments by setting aside the vast majority of lower-duty imports for the exclusive use of Canadian processors, with only a small minority reserved for other businesses along the dairy supply chain, such as distributors. The case is the first-ever ruling by a dispute-settlement panel under the trade pact that also includes Mexico.