Last week a decision was released in a dispute between the US and Canada related to Canada’s dairy tariff-rate quotas (TRQ) under the United States-Mexico-Canada Agreement (USMCA). The dispute settlement panel found that certain Canadian restrictions on use of the TRQs are in violations of its obligations under the free trade agreement. Specifically, the Panel found that Canada has breached its USMCA Article 3.A.2.11(b) commitments by “reserving TRQ pools exclusively for the use of processors.”
