WASHINGTON—The U.S. prevailed over Canada in a long-running dispute over Canadian policies aimed at shielding its dairy industry from American competition, according to a ruling published Tuesday from the first dispute resolution panel under the new U.S.-Mexico-Canada Agreement.
The USMCA panel ruled that Canada’s policies violated its obligations under the trade deal between the three countries, which was agreed upon in 2018 and took effect in 2020. Canada has until Feb. 3 to bring its policies into compliance, or else face possible tariffs or other countermeasures from the U.S.
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