Dairy Farmers of Canada (DFC) offered the following statement regarding the new allocation mechanism for Tariff Rate Quotas under the Canada-U.S.-Mexico Agreement (CUSMA), announced earlier today by the federal government.
May 16, 2022 (Ottawa) – Today, the Government of Canada announced the implementation of a new allocation mechanism for its dairy Tariff-Rate Quotas (TRQs) under the Canada-United States Mexico Agreement (CUSMA). The new allocation mechanism, which is based on market share, does not reserve any portion of the CUSMA TRQs specifically to Canadian dairy processors, and is therefore fully compliant with the CUSMA dispute settlement panel decision earlier this year which required Canada to revisit its model that had pools dedicated to processors.
By allocating CUSMA TRQs to processors and distributors, Canada is meeting its trade obligations while ensuring a measure of predictability in dairy imports in a manner that supports supply management, a system based primarily on supplying the needs of Canadian consumers.
Our industry worked closely with the government on this file, and this approach has shown itself to be one worth replicating be it on CUSMA or any other trade related matter.
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About Dairy Farmers of Canada
Dairy Farmers of Canada is the national policy, lobbying and promotional organization representing Canadian dairy producers. DFC strives to create stable conditions for the dairy sector in our country. It also seeks to maintain policies that promote the sustainability of Canadian dairy production and promote dairy products and their health benefits. Dairy farmers have set a goal of net-zero emissions from farm-level dairy production by 2050.
Lucie Boileau, Director of Communications,
Dairy Farmers of Canada
[email protected] / 613-220-1724