Report on Canada’s dairy tariff rates quota consultation, updated 12 May 2020

Prepared by New Zealand High Commission, Ottawa. Updated on 12 May 2020 from the original released in March 2020

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Background

Under the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), Canada opened its dairy market to CPTPP partners. By 2028, 10 years after the CPTPP entered into force, Canada will provide 104,000 megatonnes (MT) of CPTPP-wide access (approximately 3.3% of its market). New Zealand exporters are eligible to take advantage of this new market.

To facilitate immediate access to this market, Canada applied interim administration measures. It is now consulting on its long-term allocation and administration policies for supply-managed (dairy, poultry and egg products) tariff rate quotas (TRQs) which will replace the interim policies from 1 September 2020.

Summary

The Canadian Government launched phase II of the comprehensive review of the allocation of administration of tariff rate quotas (TRQ) for dairy, poultry and egg products(external link) in February 2020.

Recognising the impact that the COVID-19 situation is having on stakeholders, Canada announced on 1 May that the review has been temporarily suspended.

No timeline has been provided for when the review will resume.

Canada has confirmed that submissions submitted under phase II of the review will be taken into consideration when the review resumes.

The existing interim administration arrangements will remain in place for CPTPP dairy year 3 TRQs (opening for application 1 May 2020). We outline below two options for applying for this quota.

If you have questions, contact Rachel Spencer at rachel.spencer@mfat.govt.nz

Report

The government launched phase II of Canada’s comprehensive review of tariff rate quotas (TRQ) for dairy, poultry and egg products in February 2020.

See the summary report of phase I of the consultations(external link) held between May and August 2019.

In Phase 1, the New Zealand Government encouraged Canada to take active steps to ensure administration of TRQs is:

  • transparent, equitable, commercially viable, and minimally burdensome on trade
  • responsive to market conditions
  • accessible to new entrants
  • supportive of full utilisation

Recognising the impact that the COVID-19 situation is having on stakeholders, Canada announced on 1 May that the review has been temporarily suspended. No timeline has been provided for when the review will resume. Canada has confirmed that submissions submitted under phase II of the review will be taken into consideration when the review resumes.

How to apply for Canada's CPTPP Dairy TRQ under the interim arrangements

There are two interim options for applying for Canada’s CPTPP dairy quota. New administration and allocation measures will be published on 1 September 2020.

Option 1

To apply directly for CPTPP quota (in either the processor or distributor category) an applicant/company must:

The timelines for applying for CPTPP dairy quota are as follows.

CPTPP TRQ year 3 dairy year

Applications will open on 1 May 2020 and will close on 15 June 2020. Find the notice to importers(external link).

CPTPP TRQ year 4 calendar year

Applications will open on 1 October 2020 and will close on 15 November 2020. Find the notice to importers(external link).

Option 2

Partner with an existing TRQ holder to assist in filling their quota. Find the current quota holders list(external link).

Contact the export helpdesk

exports@mfat.net

0800 824 605

tradebarriers.govt.nz(external link)

Email exports@mfat.net to request a topic for reporting.

Disclaimer

This information released in this report aligns with the provisions of the Official Information Act 1982. The opinions and analysis expressed in this report are the author’s own and do not necessarily reflect the views or official policy position of the New Zealand Government. The Ministry of Foreign Affairs and Trade and the New Zealand Government take no responsibility for the accuracy of this report.  

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