Public Consultations: CUSMA Dairy Tariff Rate Quotas (TRQs) Panel Report Implementation – Proposed Allocation and Administration Policy Changes

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Source: Government of Canada

Allocation Policy Changes

CUSMA TRQ Current Policy Proposed Policy
Milk 85% is allocated to processors on a market share basis, for milk in bulk (not for retail sale) to be processed into dairy products used as ingredients for further food processing.

15% is allocated to distributors on an equal share basis.

85% is allocated to processors and distributors on a market share basis (using one market share calculation for all applicants) for milk in bulk (not for retail sale) to be processed into dairy products used as ingredients for further food processing.

15% is allocated to processors and distributors on a market share basis (using one market share calculation for all applicants) for any milk (no end-use requirement).

Applicants may apply for both pools.

Cream 85% is allocated to processors on a market share basis, for cream in bulk (not for retail sale) to be processed into dairy products used as ingredients for further food processing.

15% is allocated to distributors on an equal share basis.

85% is allocated to processors and distributors on a market share basis (using one market share calculation for all applicants), for cream in bulk (not for retail sale) to be processed into dairy products used as ingredients for further food processing.

15% is allocated to processors and distributors on a market share basis (using one market share calculation for all applicants), for any cream (no end-use requirement).

Applicants may apply for both pools.

Butter and Cream Powder 80% is allocated to processors on a market share basis.

10% is allocated to further processors on a market share basis.

10% is allocated to distributors on an equal share basis.

A percentage is allocated to processors, further processors and distributors on a market share basis (using one market share calculation for all applicants) for goods in bulk (not for retail sale) to be processed into dairy products used as ingredients for further food processing:

Year % for further processing
2022/23 75%
2023/34 64%
2024/25 and beyond 50%

The remainder is allocated to processors, further processors and distributors on a market share basis (using one market share calculation for all applicants) for any butter or cream powder (no end-use requirements).

Applicants may apply for both pools.

Industrial Cheeses 80% is allocated to processors on a market share basis.

20% is allocated to further processors on a market share basis.

All imports are to be in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing).

100% is allocated to processors, further processors and distributors on a market share basis (using one market share calculation for all applicants).

All imports are to be in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing).

Cheeses of All Types

Concentrated or Condensed Milk

85% is allocated to processors on a market share basis.

15% is allocated to distributors on an equal share basis.

100% is allocated to processors and distributors on a market share basis (using one market share calculation for all applicants).
Skim Milk Powder

Milk Powders

Yogurt and Buttermilk

Powdered Buttermilk

Whey Powder

Products Consisting of Natural Milk Constituents

Ice Cream and Ice Cream Mixes

Other Dairy

80% is allocated to processors on a market share basis.

10% is allocated to further processors on a market share basis.

10% is allocated to distributors on an equal share basis.

100% is allocated to processors, further processors and distributors on a market share basis (using one market share calculation for all applicants).

 

Administration Policy Changes

Policy Element Current Policy Proposed policy
Market Activity for Processors Base market activity for processor applicants on their manufacturing of goods covered by the TRQ (except the Milk TRQ, which is quantity processed). Base market activity for processor applicants on their sales of goods covered by the TRQ (except the Milk TRQ, which is based on the quantity of goods processed that are covered by the TRQ).
Sales Distributor-to-distributor sales, sales to related parties and sales to final consumer normally cannot be included in an applicant’s total sales. Processor-to-processor sales, distributor-to-distributor sales, sales to related parties and sales to final consumers cannot be included in an applicant’s total sales.