Canada’s Dairy TRQs Application Period Now Open – U.S. View Changes as Non-Compliant

Trade Update • May 17, 2022

lobal Affairs Canada has opened the application period for the 2022-2023 dairy year TRQs and the previously unallocated quota under the 2022 CUSMA calendar year dairy TRQs, starting on May 16, 2022 and with a deadline of June 15, 2022.

Canada has changed its allocation policies for all CUSMA dairy TRQs, including their respective application forms. Under the new CUSMA dairy TRQs policies, Canada has:

• Removed all allocation holder pools under all CUSMA dairy TRQs; and
• Included distributors as eligible under the CUSMA Industrial Cheeses TRQ.

Given Canada’s deep concerns with the discriminatory electric vehicle tax credits proposed in the Build Back Better bill under U.S. Congress consideration, a decision regarding the potential allocation of the previously unallocated quota under the 2022 CUSMA calendar year dairy TRQs will be taken as the issue evolves, but not later than July 31. Any previously allocated and unused quota under the 2022 CUSMA calendar year dairy TRQs will remain valid until December 31, 2022.

Application

Interested entities, who are not current allocation holders under the 2022 CUSMA calendar year dairy TRQs can apply for a portion of the previously unallocated quota under these TRQs by submitting an application. Current allocations holders under the 2022 CUSMA calendar year dairy TRQs are not required to submit a new application.

• The current Notices and all application forms can be found on the Supply-Managed TRQs website.
• The Notices should be read in conjunction with the General Information on the Administration of TRQs for Supply-Managed Products and the Key Dates and Access Quantities 2022-2023: TRQs for Supply-Managed Products.

U.S. Views Changes as Non-Compliant

The Biden administration and the U.S. dairy industry view Canada’s allocation policy changes as non-compliant with the U.S.-Mexico-Canada Agreement.

International Dairy Foods Association Urges USTR to Act Quickly

“This outcome is completely unacceptable,” said Michael Dykes, D.V.M., president and CEO of IDFA. “Canada’s publication today clearly shows they are ignoring their trade commitments agreed to in the USMCA and refusing to administer their dairy TRQs in a manner compliant with the agreement. The U.S. dairy industry has made clear from the start that U.S. dairy exporters demand real TRQ reform that will permit the market access Canada agreed to. The U.S. met with Canada a week ago on this very matter and expected a good faith effort. Instead, Canada continues to deny U.S. dairy products from reaching their full capacity under the terms of the deal and continues to deny the existence of any obligations. IDFA thoroughly rejects the Canadian policy published today and demands a swift response from USTR.”