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Applications Now Being Accepted for Tariff Rate Quota Allocations Under the New TPP

Posted November 27, 2018

Ahead of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) taking effect next year, the Government of Canada has advised that applications are now being accepted for the tariff rate quotas (TRQs) applicable to various agricultural products.
Supply Managed Ag Products
A TRQ is a policy instrument established under a trade agreement that allows a set amount of specific products (usually in “sensitive” domestic industries that are afforded a certain degree of protection from foreign competition) to be imported at a preferential or zero rate of duty.

Under the CPTPP, Canada has granted new access to imports for various goods in the dairy, poultry and egg sectors. In the case of dairy products, for example, Canada agreed to provide access to 3.25% of the domestic market to CPTPP-originating products. Handling of this additional market access is being dealt with by the creation of 20 new TRQs that will be implemented and administered by Global Affairs Canada under the Export and Import Permits Act.

The government has published a series of Notices setting out the eligibility criteria to obtain an allocation under each respective TRQ, including application forms and related information. In order to be eligible, at a minimum, an applicant must be a resident of Canada and have been active in the relevant domestic sector for at least one year.

Links to the various Notices are as follows: milk; cream; skim milk powders; milk powders; cream powders; concentrated milk; yogurt and buttermilk; powdered buttermilk; whey powder; products of natural milk constituents; butter; industrial cheese; mozzarella & prepared cheeses; cheeses of all types; ice cream and mixes; other dairy; broiler hatching eggs and chicks; chicken; turkey; and eggs.

Applications for an allocation under the new CPTPP TRQs may be submitted to Global Affairs Canada by email to the applicable address identified in each Notice. The deadline for submitting an application is December 12, 2018. Allocations will be issued on December 21, 2018.

It should be noted that only products originating from a CPTPP country that has ratified the trade pact may be imported under these new TRQs. As of December 30, 2018, allocation holders will be able to request import permits for products that originate in Australia, Japan, Mexico, New Zealand, and Singapore. In the case of products originating in Vietnam, which ratified the CPTPP on November 16, 2018, allocation holders will be able to request import permits as of January 14, 2019.

For additional information about the TRQ allocation process as it relates to the CPTPP, Global Affairs Canada has published an extensive list of Frequently Asked Questions. Should you have any additional queries about this matter, please don’t hesitate to contact us.