The US government says it will carefully study the ruling before taking further steps. The United States has previously tried to circumvent Canadian rules limiting foreign dairy imports through other international trade organizations as well.
The American dairy industry had hoped for a revision of the export rules in the NAFTA free trade agreement to facilitate their access to the Canadian dairy market. The ruling has brought the longstanding debate about Canada’s dairy management system into the spotlight, with the United States arguing that it hinders free trade and disrupts competition.
The Canadian dairy industry, on the other hand, welcomes the ruling as a confirmation of their fair trade practices and the importance of preserving the Canadian dairy management system. This system, known as supply management, limits the production of dairy products to prevent overproduction and ensure stable prices for dairy farmers.
With this victory, Canada expects to remain protected from excessive competition from the US. However, experts suggest the ruling could also have broader implications for international dairy trade, as other countries may consider similar measures to protect their own dairy industries.