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

WASHINGTON—Canada will be forced to end tariffs on U.S. dairy products under a milestone decision Tuesday that could allow American dairy farmers to increase sales to Canada by more than $200 million annually.

The ruling came in the first-ever use of a new dispute resolution panel established by the U.S.-Mexico-Canada Agreement. The U.S. contended that Canada used a complex set of tariff-rate quotas to reserve a share of the dairy market exclusively for Canadian dairy processors in violation of the 2020 pact.

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