(Reuters) – On Wednesday, the Biden administration stated that it requested that a second dispute resolution panel be established under U.S.-Mexico-Canada Agreement. This will allow for the review of a dispute between Canada and Mexico over milk import quotas.

According to Katherine Tai of U.S. trade representative, Canada claims its dairy tariff rate quota allocation policies deny Canadians access, including to retailers and other types importers. They also impose new conditions regarding the allocation and utilization of the quotas.

U.S. claims Canada also undermines market access, which it has agreed to offer in the USMCA.

Tai stated in the statement that “we communicated clearly with Canada that its new policy is not compatible with the USMCA” and that it prevents U.S. producers, workers, and farmers from obtaining the full market access that Canada promised under the USMCA.

Tai’s office won victory for Washington in an earlier dispute settlement panel under (USMCA), which took effect in 2020. Canada claimed that the panel’s dispute settlement report was “overwhelmingly favorable” for it.