The appellate body of the World Trade Organization issued a ruling Tuesday that a Canadian law exempting import duties only for automobiles made by U.S.-owned automakers violates WTO rules.
The petition was filed by Japan and the European Union.
The ruling, which was delivered to the parties concerned, means Japan and the EU will be entitled to apply sanctions against Canada unless the Canadian government changes its trade law.
The WTO Appellate Body report was scheduled to be made public Wednesday.