Canada violated its promise to allow slightly more dairy imports by imposing unfairly complicated rules. The U.S. says Canada now has a few weeks to comply with the ruling, or face the possibility of a trade penalty such as a tariff. Canada left domestic processors in charge of allocating import permissions, known as tariff-rate quotas. This angered the U.S. industry and government: both the Trump administration and the Biden administration moved forward with a case against Canada.

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