Canadian Cheese Importers Deeply Disappointed with Canada’s Newly Published CPTPP Dairy TRQ Policies

OTTAWA, ON, May 2nd, 2024 – The International Cheese Council of Canada (ICCC) is deeply disappointed with Canada’s newly published dairy tariff rate quota policies, announced in response to a precedent-setting dispute under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Despite New Zealand’s win in the first-ever CPTPP dispute settlement panel in September 2023 – in which the panelists found elements of Canada’s TRQ administration to be inconsistent with provisions of the agreement – Canada has decided to move forward once again with TRQ policies which do not meaningfully meet the spirit and letter of the CPTPP Agreement.

“The ICCC is disheartened by Canada’s new allocation and administration for the CPTPP dairy TRQs,” said Joe Dal Ferro, the ICCC’s Chair. “Canada continues to undermine its own trade obligations (under CPTPP and other agreements), which have already – and continue to – create negative impacts for Canadian consumers and many small- and medium-sized Canadian enterprises, including ICCC members.”

Under the CPTPP Agreement, which came into force on December 30, 2018, Canada agreed to provide additional market access for supply-managed goods to CPTPP parties with the creation of three new cheese TRQs. In practice, however, Canada’s TRQ administration and allocation practices have limited the realization of this granted market access, leading to this trade dispute.

“The Government of Canada’s single-minded priority of protecting its established, and financially robust domestic dairy industry, at the expense of small- and medium-sized businesses importing foreign cheeses, is inconsistent with its rhetoric about supporting small businesses. This also comes at the expense of Canadian consumers. The ICCC calls on the Canadian government to come back to the table in good faith, and modify these exclusionary policies as to not shut out Canada’s decades-old cheese importing industry from the market, and to restore our country’s reputation as a trusted trading partner,” added Dal Ferro.

As Canadian enterprises hurt by Canada’s newly-announced approach, the International Cheese Council of Canada (ICCC) welcomes future efforts to ensure that Canada fulfills its treaty obligations. The ICCC will also continue to work with all stakeholders to ensure that Canadians are able to enjoy the benefits of Canada’s international trade agreements.