The United States has accused Canada of not meeting trade agreement obligations under the 2020 U.S.-Mexico-Canada Agreement (USMCA). However, a trade dispute panel has rejected the complaint. Canada was accused of improperly limiting access to its dairy market, according to an official report last week.

U.S. Trade Representative Katherine Tai said she is “very disappointed” in the three-person independent panel ruling. Tai states that the U.S. continues to have “serious concerns” about how Canada is fulfilling its USMCA dairy commitments. Further, Tai says the U.S. “will not hesitate” to use all resources to enforce the trade agreement in its entirety.

Canada’s 10,000 dairy farmers make up one of the most prominent political lobbies.

Read more on Canada’s USMCA implementation here.