The Biden administration said on Wednesday that it is requesting the formation of a second dispute settlement panel under the United States-Mexico-Canada Agreement (USMCA) to review the trade dispute with Canada regarding import quotas on dairy products.

The United States alleges that the measures allocating tariff rate quotas on Canadian dairy products prevent access to qualified applicants, including retailers and other types of importers, and impose new conditions on the allocation and use of quotas, according to a statement from the office of United States Trade Representative Katherine Tai.

The United States also alleges that Canada is undermining the market access it agreed to provide under USMCA. Tai said in the statement: “We have clearly informed Canada that its new policies are not consistent with USMCA and prevent American workers, producers, farmers, and exporters from fully benefiting from the market access Canada committed to under USMCA.”

Tai’s office announced Washington's victory earlier this year in the first dispute settlement panel brought under the USMCA, which came into effect in 2020. Canada said the panel’s report found in its favor “by an overwhelming majority.”