U.S. says it will deliver first dispute below new trade settlement with Canada, about milk.

The Trump administration declared Wednesday that it was submitting a challenge to actions that Canada uses to safeguard its dairy market, the 1st enforcement action taken less than a new trade settlement that the international locations agreed to very last year.

The Place of work of the United States Trade Representative mentioned it was demanding Canada’s method of obstacles to maintain international products from flooding the market place, which the United States stated has undermined the ability of American dairy farmers to sell their goods into Canada.

The United States-Mexico-Canada Agreement, which replaced the North American Free of charge Trade Arrangement this year, presents governments the capacity to bring trade disputes if they believe some others aren’t next the regulations. Beneath the terms of the settlement, the United States and Canada will now enter consultations, and if the problem is not fixed the United States can ask for a unique panel be fashioned to look at the issue.

The Trump administration has touted its settlement with Canada as a gain for American dairy farmers, who had beforehand been excluded from exporting some items to that state provided Canada’s longstanding plan of running its dairy provide with creation quotas and superior levies. In rewriting the trade agreement, the U.S. insisted on gaining access for American cheese, milk and other dairy products.

Canada’s actions violate its commitments and hurt U.S. dairy farmers and producers,” Robert E. Lighthizer, the United States trade representative, said in a assertion. “We are dissatisfied that Canada’s procedures have created this very first-at any time enforcement motion beneath the U.S.M.C.A. necessary to make sure compliance with the settlement.”

In August, American officers announced new tariffs on Canadian aluminum, citing a surge in metal imports. But the U.S. lifted them next consultations with Canada.