The federal government suggests changes to tariff rate quota allocation process to comply with the ruling from last fall
REGINA — Canada is consulting on proposed changes to the dairy tariff rate quotas under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The proposals come after a dispute panel last September found “non-conformities” on two of the claims New Zealand made against Canada. The panel ruled in Canada’s favour on two other claims.
The panel said Canada restricts allocation access by giving priority to domestic processors. And, it said notices to importers are inconsistent with the agreement because the pooling system “operates to limit the opportunity for otherwise eligible applicants to use the TRQs fully.”
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Earlier this month the government announced it would consult until March 7 on changes that would open up the allocations.
For example, for industrial cheese the current allocation is 80 percent to processors on the basis of market share and 20 percent to further processors. That would change to 100 percent to processors, further processors and distributors, all on a market share basis.
This change to using market share to determine allocation would also affect milk, butter, yogurt, other types of cheese and dairy products.
The International Cheese Council of Canada said it was disappointed with the proposals.
“Our members and associate members — small and medium-sized enterprises — have been left worse off by this exact system under (the U.S.-Mexico-Canada Agreement),” said chair Joe Dal Ferro.
“We can’t believe our own government would do this to our industry once again, in the midst of a crisis — which they contributed to — the expiry of the Cheese Letters.”
The letters are side agreements to trade deals that maintained tariff-free export quotas.
ICCC members are cheese importers, and the organization “works to ensure that Canada’s cheese TRQs are put in the hands of those most likely to use it.”
That increases quota fill rates, it said.
The Dairy Processors Association of Canada said it was reviewing and analyzing the changes and consulting with members before submitting its comments.
“Until then we will not be making further comments other than to say that we welcome the opportunity to provide feedback on the proposed changes and look forward to continuing to engage with government officials to ensure that Canada meets its international obligations,” it said in an emailed statement.
