Canadian cheese import quotas may be the dairy loophole trade negotiators are looking for

Import quotas on American cheese may represent one of Canada’s few options for dairy trade negotiation with the U.S. as it seeks to avoid 50 per cent tariffs. However, this would probably be costly to dairy processors and farmers.

A new report from the C.D. Howe Institute written by Ontario policy analyst Al Mussell suggests Canada could work with the U.S. to revamp cheese tariff rate quota (TRQ) allocation without going against Bill C-202.

That bill protects supply managed dairy, poultry and eggs by prohibiting the increasing of TFQs or reducing the tariff that would be applied if the U.S. imports more than the quotas allow.