Minister Ng on dairy tariff rate quota policies under CUSMA

OTTAWA, Canada – Mary Ng, minister of international trade, export promotion, small business and economic development, issued the following statement regarding the publication of Canada’s new dairy tariff rate quota (TRQ) policies under the Canada-United States-Mexico Agreement (CUSMA):

“Following public consultations from March 2 to April 19, Canada has published new CUSMA dairy TRQ allocation and administration policies. The CUMSA dispute settlement panel’s report ruled in favour of Canada in a majority of the claims. The new policies address the sole finding of a CUSMA dispute panel that Canada’s practice of reserving TRQ pools exclusively for the use of dairy processors is inconsistent with the Agreement. The new policies end the use of processor-specific TRQ pools.

“Canada takes its commitments and obligations under international agreements seriously. These include the commitments that Canada has made under CUSMA with the United States, Canada’s closest trading partner. We are confident that the new policies fully comply with the panel’s findings and its recognition that Canada has the full discretion to administer its TRQs under CUSMA in a manner that supports Canada’s supply management system for dairy.

“We will always stand up for its dairy industry, farmers and workers and the communities they support, and at a time when global food security is under threat, it is even more important that we strengthen and maintain a strong and vibrant domestic dairy industry.

“Canada and the United States share a long-standing and mutually beneficial economic relationship, and the continued implementation of tangible CUSMA market access commitments will help bring benefits on both sides of the border.”

Quick facts

• Today’s announcement follows the United States’ request for a dispute settlement panel on May 25, 2021 and the panel’s final report issued on December 20, 2021.
• The Government of Canada held public consultations from March 2 to April 19, 2022 on its proposed Panel implementation plan.