Dairy Farmers of Canada comments on new CUSMA TRQ allocation mechanism

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Source: Dairy Farmers of Canada

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.