U.S. Prevails Over Canada in Dairy Dispute Under New Trade Deal

WASHINGTON—Canada will be pressured to close tariffs on U.S. dairy products and solutions underneath a milestone decision Tuesday that could allow for American dairy farmers to improve gross sales to Canada by additional than $200 million yearly.

The ruling came in the initial-ever use of a new dispute resolution panel founded by the U.S.-Mexico-Canada Arrangement. The U.S. contended that Canada applied a sophisticated set of tariff-rate quotas to reserve a share of the dairy sector solely for Canadian dairy processors in violation of the 2020 pact.