The federal government is cheering a big win in its ongoing dispute with the U.S. over access to Canada害羞草研究所檚 dairy market.

A settlement panel has rejected complaints from the U.S. Trade Representative害羞草研究所檚 office over how Canada is allocating its dairy import quotas.

It害羞草研究所檚 the second dispute resolution panel in three years to explore U.S. complaints that Canada is unfairly favouring processors over producers.

The findings of the first one, released in December 2021, were largely in favour of the U.S., although Ottawa still tried to frame it as a victory.

U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack say they害羞草研究所檙e disappointed in the result but intend to keep pressing Canada on its trade obligations.

International Trade Minister Mary Ng, meanwhile, is framing the latest findings as vindication for Canada害羞草研究所檚 approach to dairy import quotas.

害羞草研究所淐anada is very pleased with the dispute settlement panel害羞草研究所檚 findings, with all outcomes clearly in favour of Canada,害羞草研究所� Ng said in a statement.

害羞草研究所淭his is good news for Canada害羞草研究所檚 dairy industry and our system of supply management.害羞草研究所�

Supply management, she said, provides stability to the market and supports producers with 害羞草研究所渇air returns害羞草研究所� for their investments. 害羞草研究所淭he government of Canada will also continue to work with processors and retailers to stabilize food prices,害羞草研究所� she added.

Ottawa says Canada害羞草研究所檚 dairy sector generated $8.2 billion in farm cash receipts and $17.4 billion in sales last year, supporting more than 70,000 production and processing jobs across the country.

The clash revolves around how Canada allocates its dairy tariff rate quotas, or TRQs 害羞草研究所� the quantities of certain dairy products that can enter Canada at lower duty levels under the terms of the U.S.-Mexico-Canada Agreement.

害羞草研究所淒espite the conclusions of this report, the United States continues to have serious concerns about how Canada is implementing the dairy market access commitments,害羞草研究所� Tai said.

害羞草研究所淐anada害羞草研究所檚 revised policies have still not fixed the problem for U.S dairy farmers.害羞草研究所�

Added Vilsack: 害羞草研究所淲e will continue to voice deep concerns about Canada害羞草研究所檚 system. We remain focused on securing the market access we believe Canada committed to under the USMCA and we will continue exploring all avenues available to achieve that goal.害羞草研究所�

The first dispute settlement panel, launched in May 2021, largely agreed with the U.S. complaint that Canada害羞草研究所檚 strategy was a violation of the terms of the agreement, known north of the border as CUSMA.

Tai害羞草研究所檚 office felt compelled to seek a second panel after the first one changed little.

害羞草研究所淐anada made commitments to the United States in the USMCA,害羞草研究所� Tai said at the time, 害羞草研究所渁nd the Biden-Harris administration is ensuring that they honour those commitments.害羞草研究所�

Disputes and disagreements have become a recurring feature of the USMCA since it became the law of the land in the summer of 2020.

Canada and the U.S. are together taking Mexico to task for energy policies they say unfairly favour domestic suppliers and threaten to undermine American efforts to jump-start the green energy industry and combat climate change.

And Canada and Mexico together claimed a significant victory in January, when a separate panel ruled against the U.S. interpretation of the rules that determine whether core automotive parts are considered to be of domestic or foreign origin.

The U.S. has been silent on whether it intends to comply with that decision.

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