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

WASHINGTON—Canada will be forced to finish tariffs on U.S. dairy items less than a milestone decision Tuesday that could allow for American dairy farmers to boost profits to Canada by much more than $200 million on a yearly basis.

The ruling arrived in the initially-at any time use of a new dispute resolution panel proven by the U.S.-Mexico-Canada Agreement. The U.S. contended that Canada utilized a elaborate set of tariff-rate quotas to reserve a share of the dairy market completely for Canadian dairy processors in violation of the 2020 pact.