Canada responds to dairy TRQ disputes

Jun 01, 2022

Canada will always support supply management, a government representative said

By Diego Flammini
Staff Writer
Farms.com

Canada will always support supply management, a representative from the ministry of international trade, export promotion, small business and economic development says.

Farms.com reported on the United States and New Zealand launching individual disputes with Canada over how it’s handling dairy imports in relation to the Comprehensive and Progressive Agreement for Trans-Pacific Trade (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA) trade deals, respectively.

In terms of New Zealand, officials there allege Canada isn’t holding up its end of the deal when it comes to dairy imports.

“Many of Canada’s dairy TRQs remain unfilled, and this represents a tangible loss to New Zealand’s dairy exporters,” a New Zealand government release says. “The value to New Zealand of this lost market access is estimated to be approximately $68 million over the first two years, with this expected to increase year on year as the size of these quotas increase under CPTPP.”

Farms.com contacted Trade Minister Mary Ng’s office for comment on the disputes and received the following response from the minister’s press secretary, Alice Hansen.

“Canada is a fair trading partner, and we will continue to take our commitments under the CPTPP very seriously,” she told Farms.com in an email. “Our government will always stand up for Canada’s dairy industry, farmers and our supply management system. We have consistently said we will work with industry and with New Zealand on this issue, and we will continue to do so.”

Hansen also directed Farms.com to this May 16 statement from Minister Ng following Canada revising its dairy tariff rate quota policies under CUSMA.

The U.S., dissatisfied with the policies, launched a second dispute with Canada on May 25.

“Canada has failed to honor and implement its USMCA commitments by removing the trade restrictions that disadvantage and deter U.S. dairy producers and exporters from enjoying real and meaningful access to the Canadian market,” U.S. Agriculture Secretary Tom Vilsack said in a statement. “Obtaining that access remains a top priority for the Administration and we are considering all options available to achieve this objective.”

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