Final answer:
In 2021, Canada implemented a quota on European cheese imports, a trade policy mechanism used to protect domestic industries and limit imports.
Step-by-step explanation:
Import quotas are a tool used to control the quantity of a certain good that enters a country, and Canada's imposition of a quota on European cheese imports in 2021 is an example of this trade policy.
Similar historical examples include the United States setting import quotas on Japanese automobiles in the early 1980s and textile imports under the international Multifiber Agreement from 1974 to 2004.
These import quotas are typically established to protect domestic industries from foreign competition and to manage economic impacts such as job losses in sectors that face declining industries.
An import quota is a numerical limitation on the quantity of products that a country can import. Canada imposed a quota on European cheese imports in 2021, which restricted the amount of cheese that could enter the country.
This quota was put in place to protect domestic Canadian cheese producers and promote the growth of the domestic industry.